Investment Rating - The report maintains a strong buy recommendation for key companies in the industry, including Jingyuan International, Shenzhou International, and Huali Group, based on their growth potential and market positioning [4][34]. Core Insights - The industry is experiencing a marginal improvement in revenue growth for leading manufacturers, with a positive outlook for NIKE as inventory and channel conditions improve, suggesting a potential for sequential sales growth [1][3]. - The U.S. retail market has shown signs of recovery, with a positive growth trend in terminal retail sales and stable inventory levels, while Southeast Asian textile exports remain robust [2][11]. - New product launches from major international brands in sports fashion and outdoor segments are expected to increase, with a focus on market feedback for these new offerings [15][17]. Summary by Sections Industry Prosperity Analysis - Demand Side: U.S. terminal retail sales have shown recovery in Q2 2025, with healthy inventory levels. Vietnam's textile exports increased by 16% year-on-year in June 2025, while footwear exports decreased by 3% [2][13]. - Industry Trends: Major international brands are gradually launching new products in July, with an emphasis on monitoring market responses [15]. Supply Chain Tracking - Brand Side: NIKE's revenue for FY25Q4 was $11.1 billion, down 12% year-on-year, but inventory clearance and channel expansion are progressing well, with expectations for sequential improvement in sales [3][17]. - Manufacturing Side: Revenue growth for leading manufacturers showed marginal improvement in June, with specific companies reporting varied performance, such as Yuyuan's manufacturing business up by 9.4% and Yuchi's outdoor footwear revenue up by 23% [24][29]. Investment Recommendations - Jingyuan International is recommended for its diverse product range and operational efficiency, with a current market valuation corresponding to a PE of 8.5X for 2025 [4][34]. - Shenzhou International is highlighted for its recovery in capacity utilization and production efficiency, with a market valuation corresponding to a PE of 12X for 2025 [4][34]. - Huali Group is noted for its optimized customer structure and ongoing capacity expansion, with a market valuation corresponding to a PE of 15X for 2025 [4][34].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][57]. Core Views - The company achieved a revenue growth of 3.9% to 28.68 billion yuan in 2024, with a gross margin improvement of 1 percentage point to 49.4% [1][9]. - The professional running shoe category led growth, with sales exceeding 10 million pairs, while the basketball category experienced a decline due to proactive shipment adjustments [2][24]. - The company plans to maintain stable revenue growth guidance for 2025, with a focus on increasing marketing resources and investments in R&D and talent for long-term growth [2][56]. Summary by Sections Financial Performance - In 2024, the company's revenue increased by 3.9% to 28.68 billion yuan, while net profit decreased by 5.5% to 3.01 billion yuan, aligning with expectations [1][9]. - The gross margin improved by 1 percentage point to 49.4%, driven by better discounting in e-commerce and direct sales channels [9][10]. - Operating cash flow increased by 12.4% to 5.27 billion yuan, with a dividend payout ratio of 50% [10][57]. Product Category Performance - Revenue growth rates by category were as follows: running (+25%), basketball (-21%), cross-training (+6%), and sports fashion (-6%) [2][24]. - The company’s major running shoe products, including "Ultra Light," "Red Rabbit," and "Flying Electric," sold over 10.6 million pairs [2][24]. Channel Performance - Revenue growth by channel was: wholesale (+2.6%), direct sales (-0.3%), and e-commerce (+10.3%) [2][18]. - The company maintained a healthy inventory turnover, with an inventory turnover period of 63 days [30][44]. Future Guidance - The management indicated that revenue growth for 2025 is expected to be flat, with a net profit margin in the high single digits [56][57]. - The company plans to increase investments in marketing and R&D to support long-term growth [56][57]. Valuation - The target price is maintained at 17.9-19.2 HKD, corresponding to a 2025 PE ratio of 17.2-18.5x [3][57].