Core Viewpoint - The company reported a year-on-year revenue increase of 3.7% in Q3 2025, driven by growth in manufacturing revenue and shipment volume, despite a decline in average selling price (ASP) [1] Group 1: Financial Performance - In Q3 2025, the company's revenue reached $400 million, with manufacturing revenue at $390 million, and shipment volume increased by 7.8% to 13.9 million pairs [1] - For the first three quarters of 2025, the company achieved a revenue of $1.18 billion, with manufacturing revenue at $1.15 billion and total shipment volume up by 5.1% to 41.4 million pairs [1] - The company plans to maintain a dividend payout ratio of approximately 70% in 2025 and 2026, returning up to $60 million annually to shareholders through share buybacks and special dividends [1] Group 2: Production Capacity and Strategy - The company is set to expand its total production capacity by 20 million pairs starting in 2025, focusing on enhancing capacity at its new factory in Indonesia and launching a second factory in Bangladesh [1][2] - The company aims to improve production efficiency at its Indonesian and Philippine facilities by the second half of 2025, although profitability may face short-term pressure [2] - The company is committed to developing its handbag and accessories manufacturing business as a core growth driver, having recently acquired a small handbag factory in Vietnam to enhance production quality and efficiency [3] Group 3: Future Outlook - The company is on track to achieve its three-year plan (2023-2025) with a target of 10% operating profit margin and low double-digit compound annual growth rate for after-tax profits, having exceeded these targets in 2023 and 2024 [2] - The company continues to diversify its product mix and expand its customer base, with expectations of strong demand for its product development and production capacity despite current market uncertainties [2] - Revenue forecasts for 2025-2027 have been adjusted to $1.58 billion, $1.66 billion, and $1.76 billion, with net profits projected at $160 million, $170 million, and $190 million respectively [3]

Core Viewpoint - Tianfeng Securities maintains a "Buy" rating for Jiu Xing Holdings (01836), adjusting profit forecasts due to a relatively weak consumer environment while still expecting revenue and net profit growth in the coming years [1][2] Group 1: Financial Projections - Revenue projections for 2025, 2026, and 2027 are adjusted to $1.58 billion, $1.66 billion, and $1.76 billion, respectively, down from previous estimates of $1.62 billion, $1.71 billion, and $1.81 billion [1] - Net profit estimates for the same years are maintained at $160 million, $170 million, and $190 million, consistent with prior forecasts [1] - Corresponding price-to-earnings (PE) ratios are projected to be 11x, 10x, and 9x for 2025, 2026, and 2027, respectively [1] Group 2: Strategic Initiatives - The company aims to achieve a 10% operating profit margin and a low double-digit compound annual growth rate in after-tax profits by the end of its three-year plan (2023-2025), having already exceeded these targets in 2023 and 2024 [1] - Continuous improvement in product category mix, diversification, and expansion of the customer base are key strategies moving forward [1] - The company plans to optimize production capacity between luxury, high-end fashion categories, and new sports category clients, with new client shipments expected to begin in the second half of the year [1] Group 3: Business Development - The company is committed to making its handbag and accessories manufacturing business a core growth driver, targeting the introduction of more high-end clients [2] - Accelerating the development of this business will be a focus in the next three-year plan starting in 2026 [2] - A recent acquisition of a small handbag and accessories factory in Vietnam aims to leverage high-end production expertise and enhance the quality and efficiency of the company's manufacturing operations [2]

Core Viewpoint - The company reported a slight revenue growth of 0.7% in H1 2025, driven primarily by the sports category, despite facing challenges related to high base effects from the previous year and temporary gross margin pressures [1][2][3] Financial Performance - Revenue increased to $775 million in H1 2025 from $770 million in H1 2024, with a shipment volume rise of 3.8% to 27.5 million pairs [1] - Gross profit decreased by 11.9% to $175 million, resulting in a gross margin of 22.6%, down from 25.8% in the previous year [2] - Operating profit fell by 14.5% to $84.7 million, with an operating margin of 10.9%, compared to 12.9% in H1 2024 [2] Product Category Insights - Sales in the sports category grew by 8.2%, accounting for 48.5% of total revenue, benefiting from increased shipments to major sports clients and a new client collaboration [1] - Revenue from fashion and luxury categories combined decreased by 3.5%, with respective contributions of 25.4% and 7.8% to total revenue [1] - The leisure category saw a revenue decline of 9.2%, representing 18.3% of total revenue [1] Geographic Distribution - North America and Europe are the largest markets, contributing 48.7% and 23.4% to revenue, respectively, followed by China (including Hong Kong) at 15.5% [2] Strategic Planning - The company is on track with its three-year plan (2023-2025), aiming for a 10% operating profit margin and low double-digit growth in after-tax profits [3][4] - The company plans to expand total capacity by 20 million pairs, enhancing production in Indonesia and Bangladesh, and focusing on developing handbag and accessory manufacturing as a long-term growth driver [4][5] Adjustments and Forecasts - Based on H1 2025 performance and operational efficiency post-capacity expansion, the company adjusted its profit forecasts, projecting net profits of $160 million, $180 million, and $190 million for 2025-2027 [6]

Core Viewpoint - Tianfeng Securities maintains a "buy" rating for Jiu Xing Holdings (01836), adjusting profit forecasts based on the performance in the first half of 2025 and considering last year's high base effect and operational efficiency from new capacity deployment [1] Group 1: Financial Performance - The net profit forecasts for 2025-2027 are adjusted to $160 million, $180 million, and $190 million, respectively, down from previous estimates of $180 million, $200 million, and $220 million [1] - Earnings per share (EPS) estimates are revised to $0.20, $0.21, and $0.23 for the same period, compared to earlier projections of $0.22, $0.24, and $0.26 [1] Group 2: Strategic Planning - The company is currently in a stable position, a direct result of its three-year plan (2023-2025), which aims to improve product category mix, diversify and expand the customer base, and optimize manufacturing base layout [1] - The company has set two main profit targets: achieving a 10% operating profit margin and a low double-digit annual growth rate in after-tax profit over the three-year period [1] - The company has already exceeded these targets in 2023 and 2024, expressing confidence in achieving them by the end of 2025 [1] Group 3: Operational Challenges - The company faces short-term challenges in profitability due to two main factors: a high base effect from customers advancing orders to meet demand before the Paris Olympics and operational efficiency issues related to increased capacity in Indonesia and the Philippines [2] - To meet demand and ensure customer goals, the company has shifted some production to a factory in Vietnam, resulting in increased costs, including overtime expenses [2] - Despite initial challenges, the company expects conditions to improve in the second half of the year [2] Group 4: Future Growth Plans - As the company prepares to finalize its next three-year plan (2026-2028), it remains on a growth trajectory [2] - The new plan includes an expansion of total capacity by 20 million pairs, achieved through increasing capacity at the new factory in Solo, Indonesia, starting operations at a second factory in Bangladesh, and accelerating the construction of a dedicated factory for its largest sports client in Indonesia [2] - Another focus of the upcoming three-year plan is the development of handbag and accessory manufacturing, which the company aims to establish as a significant long-term growth driver [2] - The company has recently acquired a small but experienced handbag factory in Vietnam to enhance product quality and production efficiency in its handbag business [2] - The next three-year plan will enable the company to meet cross-product category demands from brand customers, positioning itself as an ideal partner that combines high-quality standards with added value [2]

Core Viewpoint - Tianfeng Securities maintains an "overweight" rating for Jiu Xing Holdings based on its performance in the first half of 2025, adjusting profit forecasts due to last year's high base effect and operational efficiency from new capacity deployment [1] Group 1: Financial Performance - The expected net profits for 2025-2027 are $160 million, $180 million, and $190 million, respectively, down from previous estimates of $180 million, $200 million, and $220 million [1] - Earnings per share (EPS) are projected to be $0.20, $0.21, and $0.23 for the same period, revised from $0.22, $0.24, and $0.26 [1] Group 2: Strategic Planning - The company is currently in a stable position, a direct result of its three-year plan (2023-2025), which aims to improve product category mix, diversify and expand the customer base, and optimize manufacturing base layout [1] - The company has set two main profit targets: achieving a 10% operating profit margin and a low double-digit annual growth rate in after-tax profits over the three-year period [1] - The company is confident in achieving these targets by the end of 2025, having already exceeded them in 2023 and 2024 [1] Group 3: Operational Challenges - The company faces short-term challenges in profitability due to two main factors: a high base effect from customers advancing orders to meet demand before the Paris Olympics and operational efficiency issues related to increased capacity in Indonesia and the Philippines [2] - To meet demand and ensure customer goals, the company has shifted some production to its factory in Vietnam, resulting in increased costs, including overtime expenses [2] - Despite initial challenges, the company expects conditions to improve in the second half of the year [2] Group 4: Future Growth Plans - As the company prepares to finalize its next three-year plan (2026-2028), it remains on a growth trajectory [2] - The new plan includes expanding total capacity by 20 million pairs, enhancing production at the new factory in Solo, Indonesia, launching operations at a second factory in Bangladesh, and accelerating the construction of a dedicated factory for its largest sports client in Indonesia [2] - Another focus of the upcoming three-year plan is to develop the handbag and accessories manufacturing business, which the company aims to establish as a significant long-term growth driver [2] - The company has recently acquired a small but experienced handbag factory in Vietnam to improve product quality and production efficiency in its handbag business [2] - The next three-year plan will enable the company to meet cross-product category demands from brand customers, positioning itself as an ideal partner that combines high-quality standards with added value [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at HKD 15.73, indicating a potential upside of 10%-20% over the next six months [4]. Core Insights - The company reported a revenue growth of 0.7% to USD 775 million in 25H1, driven primarily by a 3.8% increase in shipment volume to 27.5 million pairs, largely attributed to the sports category [1][2]. - The average selling price of footwear decreased by 3.2% to USD 27.4 per pair, influenced by a higher proportion of lower-priced sports product orders [1]. - The sports category sales increased by 8.2%, accounting for 48.5% of total manufacturing revenue, benefiting from increased shipments to major sports clients and successful collaborations with new clients [1][2]. - The company is currently facing temporary gross margin pressures due to operational efficiency issues during capacity expansions in Indonesia and the Philippines [2][8]. - The adjusted net profit for 25H1 was USD 77.9 million, down from USD 92.9 million in the previous year, with an adjusted net profit margin of 10.1% [3][9]. Summary by Sections Financial Performance - In 25H1, gross profit decreased by 11.9% to USD 175 million, with a gross margin of 22.6%, down from 25.8% in the previous year [2]. - Operating profit fell by 14.5% to USD 84.7 million, resulting in an operating profit margin of 10.9% [2][3]. Market and Product Strategy - North America and Europe are the company's largest markets, contributing 48.7% and 23.4% to revenue, respectively [2]. - The company is optimizing its product mix and expanding its customer base as part of its three-year plan (2023-2025), aiming for a 10% operating profit margin and low double-digit growth in after-tax profit [4][8]. Future Outlook - The company plans to expand its total capacity by 20 million pairs and enhance its handbag and accessories manufacturing business as part of its next three-year plan (2026-2028) [8].