Core Viewpoint - Crystal International (晶苑国际) has shown significant growth in both stock performance and financial metrics, outperforming the Hang Seng Index, indicating strong market positioning and operational efficiency [2][5]. Financial Performance - As of June 30, 2025, Crystal International reported total revenue of 8.801 billion yuan, a year-on-year increase of 12.42% - The net profit attributable to shareholders was 703 million yuan, reflecting a growth of 16.97% - The gross profit margin stood at 19.73%, while the debt-to-asset ratio was 34.11% [2][5]. Stock Performance - Over the past month, Crystal International's stock has increased by 13.01%, and year-to-date, it has risen by 46.27%, outperforming the Hang Seng Index's increase of 25.45% [2]. Industry Valuation - The average price-to-earnings (P/E) ratio for the textile and apparel industry is -11.44 times, with a median of 3.54 times - Crystal International's P/E ratio is 10.38 times, ranking 34th in the industry [3]. Company Overview - Founded in 1970, Crystal International has evolved from a small workshop in Hong Kong to a company with approximately 20 automated manufacturing facilities across five countries, employing around 80,000 people - The company produces over 470 million garments annually for leading global apparel brands, focusing on a diverse product range including casual wear, denim, intimate apparel, knitwear, and sportswear [4]. Business Model and Sustainability - The company's co-creation business model is crucial for maintaining its industry leadership, leveraging nearly 50 years of experience and long-term partnerships with global brands - Crystal International emphasizes sustainable development through five pillars: environmental protection, innovation, product integrity, employee care, and community engagement [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved revenue and profit growth in H1 2025, demonstrating operational resilience despite external disruptions [8] - The company has three core advantages that help mitigate the impact of tariffs: FOB revenue structure, pricing advantage with brand clients, and overall industry resilience [8] - The company is expected to continue benefiting from its strong partnerships with quality brand clients and expanding into the sports and outdoor apparel sector, leading to significant growth potential [8] Financial Performance Summary - In H1 2025, the company reported revenue of $1.229 billion, a year-on-year increase of 12.42%, and a gross profit of $243 million, up 13.66% year-on-year [8] - The net profit attributable to shareholders for H1 2025 was $98 million, reflecting a year-on-year growth of 16.97% [8] - The gross margin and net margin for H1 2025 were 19.73% and 7.99%, respectively, showing slight improvements compared to the previous year [8] - The company expects to pay an interim dividend of 16.3 HKD cents per share, with a payout ratio of 60% [8] Revenue and Profit Forecast - Revenue projections for the company are as follows: $2.780 billion in 2025, $3.106 billion in 2026, and $3.449 billion in 2027, with year-on-year growth rates of 12.58%, 11.71%, and 11.06% respectively [7] - Net profit forecasts are $242 million in 2025, $287 million in 2026, and $337 million in 2027, with year-on-year growth rates of 20.83%, 18.41%, and 17.32% respectively [7] - The company’s earnings per share are projected to be $0.08 in 2025, $0.10 in 2026, and $0.12 in 2027 [7] Operational Efficiency - The company has improved production efficiency, leading to increased gross margins for casual and intimate apparel, with respective margins of 20.50% and 20.80% in H1 2025 [8] - The company’s sales and management expense ratios improved slightly to 1.31% and 7.64% in H1 2025, respectively [8] Market Position - The company has a strong market presence in the Asia-Pacific region, with revenue growth of 14.50% in H1 2025, and stable growth in North America at 11.67% [8]