Core Insights - The company is positioned as a low-valuation, high-dividend quality stock, with a recovery in momentum under supply-demand rebalancing and moderate raw material prices [1] - The company has a strong customer base and is expected to leverage its mature overseas production capacity to secure more orders in the future [1] Company Overview - The company has over 20 years of experience in elastic fabric and a stable management team [1] - Currently, 55.4% of the company's revenue comes from sports fabrics, with established partnerships with renowned brands such as ARC'TERYX, Lululemon, NIKE, adidas, Anta, and Li Ning [1] - The company has mature production capacities in China, Vietnam, and Sri Lanka, with overseas factory space comparable to domestic facilities [1] Financial Analysis - The company’s revenue CAGR from 2011 to 2024 is projected at +10.4%, with sports fabric revenue CAGR leading at +38.2% [2] - Gross margins are influenced by capacity utilization and crude oil prices, with expectations for margin improvement due to mature overseas capacity and favorable raw material price trends [2] - The company maintains stable expense ratios and has shown improved operational efficiency, with robust operating cash flow [2] Industry Insights - The sportswear segment is growing faster than other apparel categories, benefiting elastic fabric suppliers due to increased demand for features like elasticity, breathability, and antibacterial properties [2] - The underwear market is expected to maintain steady growth, with simple and comfortable designs replacing traditional lace and underwire options [2] - The company is a leading player in elastic fabric production, having accumulated advantages over traditional knitted fabric manufacturers, though there is still room for improvement compared to industry leaders in elastic fabrics [2] Future Outlook - The company is recognized as a low-valuation, high-dividend quality stock, with a consistent dividend payout since its listing and a stable dividend ratio of 50% in recent years, achieving a dividend yield of over 9% for four consecutive years [2] - The company is expected to benefit from its mature production capacities in Vietnam and Sri Lanka, allowing it to capture more orders as brands adjust their production strategies [2] - The company has established long-term partnerships with well-known sports and outdoor brands, with expectations for continued order flow as collaborations deepen [2]

Core Viewpoint - The report from Guotai Junan expresses optimism about Super盈 International Holdings (02111) leveraging its extensive experience in the elastic fabric sector to deepen collaborations with renowned domestic and international sports and outdoor brands, while capitalizing on mature overseas production capacity to secure more orders amid adjustments in the textile and apparel manufacturing trade landscape [1] Group 1: Financial Projections - The company is projected to achieve a net profit attributable to shareholders of HKD 5.9 billion, HKD 6.4 billion, and HKD 7.0 billion for the years 2025, 2026, and 2027 respectively [1] - The average target price is set at HKD 4.42 per share, derived from a combination of PE and PB valuation methods, with an initial coverage rating of "Buy" [1] Group 2: Investment Highlights - The company is characterized as a high-quality stock with low valuation and high dividends, having maintained uninterrupted annual dividends since its listing, with a stable payout ratio of 50% in recent years and a dividend yield exceeding 9% for four consecutive years [1] - The mature production capacity in Vietnam and Sri Lanka is expected to enable the company to benefit significantly from the adjustment of production capacity under equivalent tariffs, allowing it to secure more brand orders [1] - The company has established long-term relationships with well-known sports and outdoor brands, with collaborations lasting over five years, which is anticipated to ensure a steady flow of future orders as partnerships deepen [1]