Core Viewpoint - The company, Huayi Group, is a leading global manufacturer of sports footwear, primarily serving well-known brands and benefiting from the depreciation of the RMB, with a significant portion of its revenue coming from overseas sales [2][3]. Company Overview - Huayi Group specializes in the development, design, production, and sales of sports footwear, serving major global brands such as Nike, Converse, and Puma [2]. - The company was established on September 2, 2004, and went public on April 26, 2021, with its main business revenue composition being 89.53% from sports casual shoes, 8.31% from sports sandals/slippers, and 2.07% from outdoor boots [7]. Financial Performance - For the first half of 2025, Huayi Group achieved a revenue of 12.661 billion yuan, representing a year-on-year growth of 10.36%, while the net profit attributable to shareholders decreased by 11.06% to 1.671 billion yuan [7]. - The company has distributed a total of 9.103 billion yuan in dividends since its A-share listing, with 6.652 billion yuan distributed over the past three years [8]. Shareholder Structure - As of June 30, 2025, the top ten circulating shareholders included Hong Kong Central Clearing Limited and E Fund's various funds, with notable changes in their holdings [8][9]. - The number of shareholders decreased by 11.35% to 12,500, while the average circulating shares per person increased by 12.80% to 93,359 shares [7]. Market Activity - On September 26, the stock price of Huayi Group fell by 1.54%, with a trading volume of 859.524 million yuan and a market capitalization of 62.633 billion yuan [1]. - The stock has shown no clear trend in major net inflows, with a net inflow of 1.5671 million yuan on the day, ranking 10th in its industry [4][5].

Group 1 - The core viewpoint of the news is that Huali Group's stock has seen a significant increase of 5.02%, reaching a price of 56.08 CNY per share, with a trading volume of 166 million CNY and a turnover rate of 0.26%, resulting in a total market capitalization of 65.445 billion CNY [1] - Huali Group, established on September 2, 2004, and listed on April 26, 2021, is primarily engaged in the development, design, production, and sales of sports footwear, with its main revenue sources being 89.53% from sports casual shoes, 8.31% from sports sandals/slippers and others, 2.07% from outdoor boots, and 0.09% from other supplementary products [1] Group 2 - According to data from the top ten holdings of funds, one fund under Invesco Great Wall has a significant position in Huali Group, holding 192,800 shares, which remains unchanged from the previous period, accounting for 3.67% of the fund's net value, making it the sixth-largest holding [2] - The Invesco Great Wall Small and Medium Cap Select Stock A fund, established on April 30, 2014, has a current scale of 274 million CNY, with a year-to-date return of 23.26% and a one-year return of 45.72%, ranking 2196 out of 4222 and 2260 out of 3805 respectively [2] - The fund manager Zhang Jing has a tenure of 14 years and 130 days, with a total asset scale of 5.632 billion CNY, achieving the best fund return of 340.69% during his tenure, while the other manager Liu Lisi has been in position for 309 days with a total asset scale of 529 million CNY, achieving a best return of 24.35% [2]

Core Viewpoint - Huayi Group's stock price increased by 3.72% on September 17, with a trading volume of 202 million yuan, indicating positive market sentiment despite a net financing outflow [1] Financing Summary - On September 17, Huayi Group had a financing buy-in amount of 14.59 million yuan and a financing repayment of 17.78 million yuan, resulting in a net financing outflow of 3.19 million yuan [1] - The total financing and securities balance for Huayi Group reached 114 million yuan, with the financing balance accounting for 0.18% of the circulating market value, indicating a high level compared to the past year [1] - The company had a securities lending balance of 1.56 million yuan, with a lending volume of 28,500 shares, also reflecting a high level compared to the past year [1] Business Performance - For the first half of 2025, Huayi Group reported a revenue of 12.66 billion yuan, representing a year-on-year growth of 10.36%, while the net profit attributable to shareholders decreased by 11.06% to 1.67 billion yuan [2] - The company has distributed a total of 9.10 billion yuan in dividends since its A-share listing, with 6.65 billion yuan distributed over the past three years [2] Shareholder Information - As of September 10, the number of shareholders for Huayi Group was 14,100, a decrease of 2.76% from the previous period, while the average circulating shares per person increased by 2.84% to 82,765 shares [2] - Major institutional shareholders have seen changes, with Hong Kong Central Clearing Limited holding 5.68 million shares, a decrease of 4.10 million shares from the previous period [2]

Core Viewpoint - Huali Group has shown mixed financial performance with a revenue increase but a decline in net profit, alongside significant trading activity in its stock [1][2]. Group 1: Financial Performance - For the first half of 2025, Huali Group achieved a revenue of 12.661 billion yuan, representing a year-on-year growth of 10.36% [2]. - The net profit attributable to shareholders for the same period was 1.671 billion yuan, which reflects a year-on-year decrease of 11.06% [2]. - Cumulative cash dividends since the company's A-share listing amount to 7.936 billion yuan, with 5.485 billion yuan distributed over the past three years [2]. Group 2: Stock Trading Activity - On August 26, Huali Group's stock price increased by 0.65%, with a trading volume of 161 million yuan [1]. - The margin trading data for August 26 indicates a financing purchase of 14.8827 million yuan and a net financing purchase of 2.2955 million yuan, with a total margin balance of 109 million yuan [1]. - The short selling activity on the same day included 2,300 shares sold, with a total value of 124,100 yuan, and a short selling balance of 1.4027 million yuan, indicating high levels of short selling compared to the past year [1]. Group 3: Shareholder Structure - As of August 20, the number of shareholders in Huali Group reached 14,100, an increase of 8.46% from the previous period [2]. - The average number of circulating shares per shareholder decreased by 7.80% to 82,765 shares [2]. - Notable changes in institutional holdings include a reduction in shares held by major shareholders, with Hong Kong Central Clearing Limited decreasing its holdings by 4.097 million shares [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for H1 2025 was 12.66 billion yuan, a year-on-year increase of 10.36%, while the net profit attributable to the parent company was 1.66 billion yuan, a year-on-year decrease of 11.42% [6] - The company is experiencing a short-term pressure on profits due to the ramp-up of new factories, but it is expected that profitability will gradually improve as production capacity is released [6] - The company is diversifying its customer base, which enhances its resilience against market uncertainties [6] - The forecast for revenue growth is 11% in 2025, 14% in 2026, and 13% in 2027, with net profit expected to be 3.5 billion yuan, 4.3 billion yuan, and 4.96 billion yuan respectively [6][4] Summary by Sections Basic Information - Total shares: 1,167 million - Market price: 54.26 yuan - Market capitalization: 63,321.42 million yuan [1] Financial Forecast and Valuation - Revenue forecast for 2023A: 20.114 billion yuan, 2024A: 24.006 billion yuan, 2025E: 26.671 billion yuan, 2026E: 30.469 billion yuan, 2027E: 34.497 billion yuan - Net profit forecast for 2023A: 3.2 billion yuan, 2024A: 3.84 billion yuan, 2025E: 3.498 billion yuan, 2026E: 4.346 billion yuan, 2027E: 4.962 billion yuan - P/E ratios: 19.8 for 2023A, 16.5 for 2024A, 18.1 for 2025E, 14.6 for 2026E, 12.8 for 2027E [4][6] Performance Analysis - The company reported a gross margin of 21.85% for H1 2025, down 6.38 percentage points year-on-year, and a net profit margin of 13.2%, down 3.17 percentage points year-on-year [6] - The company is seeing significant growth in European customer revenue, particularly from high-potential clients like Adidas and On [6]