Investment Rating - The report assigns a rating of "Buy" for the company [2]. Core Views - The company is considered a high-quality target with low valuation and high dividends, showing potential for growth due to a favorable supply-demand rebalancing and moderate raw material prices [3]. - The company has a strong customer base and is expected to leverage its mature overseas production capacity to secure more orders in the future [3]. Financial Summary - The projected total revenue for 2024 is HKD 5,061 million, with a year-on-year growth of 20.5%. The net profit attributable to the parent company is expected to be HKD 608 million, reflecting a significant increase of 75.3% [5]. - The company’s PE ratio is projected to be 4.80 in 2024, indicating a low valuation compared to historical averages [5]. Company Overview - The company has over 20 years of experience in elastic fabric production and has established itself as a leader in the lingerie materials market, providing comprehensive procurement solutions for well-known brands [16]. - The company has successfully transitioned to become a significant supplier of sports fabrics, with major clients including ARC'TERYX, NIKE, and adidas [16][27]. Growth Drivers - The company’s revenue has shown a compound annual growth rate (CAGR) of 10.4% from 2011 to 2024, with sports fabric revenue growing at a CAGR of 38.2%, outpacing other categories [44]. - The demand for sports apparel is expected to continue growing, benefiting elastic fabric suppliers as consumer health awareness increases [59]. Future Outlook - The company is well-positioned to benefit from the adjustment of production capacity under new trade dynamics, with a focus on high-quality clients and long-term partnerships [11]. - The company has maintained a stable dividend payout ratio of around 50%, with a dividend yield exceeding 9% for four consecutive years [11].

Core Viewpoint - The company reported a decline in revenue and net profit for 1H25, primarily due to uncertainties surrounding U.S. tariff policies, leading to cautious ordering from clients [1][2]. Financial Performance - 1H25 revenue was HKD 2.33 billion, down 2.3% year-on-year, while net profit attributable to shareholders was HKD 260 million, a decrease of 6.1% year-on-year [1]. - The company declared an interim dividend of HKD 0.125 per share, corresponding to a payout ratio of approximately 50% [1]. - Gross margin for 1H25 decreased by 0.4 percentage points to 26.6%, mainly due to a decline in capacity utilization [2]. - The net profit margin for 1H25 was 11.2%, down 0.4 percentage points year-on-year [2]. Product Performance - Revenue from fabrics, webbing, and lace for 1H25 showed mixed results: fabrics down 4.4% to HKD 1.81 billion, webbing up 6.9% to HKD 501 million, and lace down 20.6% to HKD 22 million [1]. - The decline in fabric revenue was attributed to cautious ordering from U.S. apparel brands, particularly in the sportswear segment [1]. Operational Efficiency - Inventory turnover days increased from 112 days at the end of 2024 to 131 days in 1H25 due to the impact of U.S. tariff policies [2]. - The company maintained stable accounts receivable turnover days at 60 days [2]. - Operating cash flow for 1H25 increased by 14.2% year-on-year to HKD 348 million, reflecting improved working capital management [2]. Debt Management - Net debt decreased by 37.1% from the end of 2024 to HKD 300 million, with the net debt-to-equity ratio dropping from 13.5% to 8.2% [2]. Market Outlook - Approximately 50% of the company's revenue comes from the U.S., and it is expected that clarity on U.S. tariff policies will lead to a gradual recovery in client orders in the second half of the year [3]. - The company is anticipated to benefit from new product orders in the sportswear segment and long-term capacity growth supported by a new factory in Vietnam [2][3]. Earnings Forecast and Valuation - The 2025 earnings forecast was revised down by 3.6% to HKD 617 million, with a new 2026 earnings estimate of HKD 661 million [3]. - The current stock price corresponds to a P/E ratio of 5.9x for 2025 and 5.5x for 2026, with a target price increase of 65% to HKD 4.45, indicating a potential upside of 27.5% from the current price [3].

Company Overview - Super盈 International Holdings primarily engages in the manufacturing and trading of elastic fabric materials, elastic webbing, and lace, with a focus on innovation and technology as core values [2] - The company has established itself as a prominent supplier of sportswear and apparel fabric materials, collaborating with leading global sportswear brands such as Anta, Fila, Lululemon, Under Armour, and Uniqlo [2] - As a leader in the global lingerie materials market, Super盈 provides comprehensive one-stop procurement solutions for lingerie brands, maintaining long-term partnerships with notable brands like Aimer, Chantelle, and Victoria's Secret [2] Financial Performance - As of June 30, 2025, Super盈 reported total revenue of 2.125 billion HKD, a year-on-year decrease of 2.33%, and a net profit attributable to shareholders of 238 million HKD, down 6.1% [1][3] - The company's gross profit margin stands at 26.63%, with a debt-to-asset ratio of 43.06% [1] Market Position and Valuation - Super盈's price-to-earnings (P/E) ratio is 5.47, ranking 13th in the textile and apparel industry, which has an average P/E ratio of -47.58 and a median of 3.32 [1] - The company has experienced a cumulative increase of 11.89% in stock price over the past month and 12.04% year-to-date, although it has underperformed compared to the Hang Seng Index, which has risen by 28.76% [1]

Group 1 - The core business of the company is the manufacturing and trading of elastic fabric materials, elastic webbing, and lace, with a focus on innovation and technology [2] - The company has established itself as a prominent supplier of sportswear and apparel fabric materials, collaborating with leading global sportswear brands such as Anta, Fila, Lululemon, Under Armour, and Uniqlo [2] - The company is a leader in the global lingerie materials market, providing comprehensive one-stop procurement solutions for lingerie brands, which helps clients reduce inventory levels and shorten production cycles [2] Group 2 - As of December 31, 2024, the company achieved total revenue of 4.687 billion yuan, representing a year-on-year growth of 20.49%, and a net profit attributable to the parent company of 563 million yuan, with a year-on-year increase of 75.29% [1] - The company's gross profit margin stands at 26.81%, and its debt-to-asset ratio is 45.73% [1] - The company's price-to-earnings ratio is 5.2 times, ranking 12th in the textile and apparel industry, which has an average price-to-earnings ratio of -12.09 times [1]