Core Viewpoint - Guoyuan International maintains a "Buy" rating for Shenzhou International (02313) and raises the target price to HKD 91.9, citing a reduction in valuation suppression factors such as tariff uncertainties and weak major clients, with the company's "dual circulation" strategy proving successful [1] Group 1: Financial Performance - In H1 2025, the company's revenue reached CNY 14.97 billion, representing a growth of 15.3%, with a gross margin of 27.1%, down by 1.9 percentage points [2] - The net profit attributable to the parent company was CNY 3.18 billion, an increase of 8.4%, with a net profit margin of 21.2%, down by 1.4 percentage points [2] - The first major client (leisure) contributed a revenue increase of 27%, while the third major client (sports) saw a revenue increase of 28% [2] Group 2: Market Dynamics - Following the implementation of tariffs, the company's Southeast Asia capacity layout benefits from the accelerated transfer of the textile industry chain, with tariff levels in Vietnam and Cambodia set at 20% and 19%, respectively [3] - The company experienced faster revenue growth from its four major clients compared to its overall growth, indicating an increase in penetration rates [3] Group 3: Competitive Positioning - The increase in customer penetration rates reflects the company's alignment with brand clients' current supply chain risk preferences, showcasing its strong manufacturing and responsiveness as a leading producer [4] - The company expanded its product offerings, including new items like football jerseys for its second-largest sports client, which is expected to enhance future revenue and maintain gross margin advantages [4]

Group 1 - The core viewpoint is that the enthusiasm for football in Jiangsu Province is driving a surge in sales of football-related products, with significant growth in professional training equipment [1] - Football shoes, footballs, and football socks are the top three products by sales volume, while various training aids have seen sales growth exceeding 60% year-on-year, indicating a trend towards professionalization in football consumption [1] - The primary consumer demographic for football products is individuals aged 36 to 45, accounting for over 50% of sales, followed by those aged 26 to 35 at 26.1%, reflecting both ongoing participation and parental demand for children's training equipment [1] Group 2 - Female consumers contribute 36.1% to football consumption, showing a significant preference for products like football apparel and sports skirts, highlighting the increasing participation and diverse needs of women in football [1] - Regional preferences in football product consumption are evident, with Guangdong, Beijing, Shandong, Sichuan, and Jiangsu being the top five areas for football equipment sales, each showing unique product preferences [1] - The trend of moving from general fitness to specialized training in football is expanding the consumption ecosystem, with a variety of professional equipment and fashion items emerging as the football culture develops [2]