Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a revenue of 12.2% year-on-year growth and a net profit increase of 37.8% for H1 2024, indicating a strong performance that exceeded profit expectations while slightly missing revenue forecasts [1]. - The gross margin improved significantly, rising by 6.6 percentage points to 29.0% due to the recovery in capacity utilization [1]. - The company is experiencing robust order growth, particularly from key clients such as Uniqlo, Nike, and Adidas, with expectations for continued strong performance in H2 2024 [2]. - The company is actively expanding its workforce and production capacity to meet increasing demand, with a focus on enhancing its competitive edge through vertical integration and international expansion [2]. Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 12.2% growth to 12.98 billion RMB and a net profit of 29.3 billion RMB, reflecting a 37.8% increase [1]. - The gross margin for H1 2024 was 29.0%, up from 22.4% in H1 2023, driven by improved capacity utilization [1]. - The company declared an interim dividend of 1.25 HKD per share, a 31.6% increase year-on-year [1]. Customer and Market Dynamics - Orders from major clients such as Uniqlo and Adidas showed significant growth, with sales to the top four clients reaching 34.0, 32.4, 23.3, and 13.4 billion RMB, representing year-on-year changes of +34%, -6%, +24%, and +0% respectively [2]. - The company’s sales by product category for H1 2024 were 92.1 billion RMB for sportswear, 27.6 billion RMB for casual wear, 9.0 billion RMB for underwear, and 1.0 billion RMB for other categories, with respective growth rates of +8%, +20%, +47%, and +12% [2]. Future Outlook - The company is expected to achieve a revenue growth of over 10% for the full year 2024, with continued recovery in gross margins and significant profit growth anticipated [3]. - The forecasted net profits for 2024, 2025, and 2026 are 58.03 billion RMB, 65.28 billion RMB, and 74.56 billion RMB, reflecting year-on-year growth rates of 27%, 13%, and 14% respectively [3].
申洲国际：订单稳健增长，毛利率修复超预期，带动业绩逐步释放