Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [7]. Core Views - The company reported a revenue of 5.35 billion yuan and a net profit of 760 million yuan for Q1 2025, showing a year-on-year increase of 12% in revenue but a slight decline of 3% in net profit [1]. - The company is expected to see a revenue growth of over 15% in 2025, driven by new customer orders and an increase in production capacity [2][4]. - The company is currently in a phase of expanding its production capacity, which is anticipated to enhance its international presence and operational efficiency in the medium to long term [3]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin of 22.9%, down 5.5 percentage points year-on-year, primarily due to the ramp-up of new factories [1]. - The company’s net profit margin decreased by 2.3 percentage points to 14.3% in Q1 2025 [1]. Customer Orders and Market Position - The company has maintained strong relationships with major brands like Nike and Adidas, with expectations of stable orders from existing clients and significant growth from new clients [2]. - The company’s new collaboration with Adidas is expected to contribute to rapid order growth in 2025 [2]. Production Capacity and Efficiency - The company plans to expand its production capacity significantly, with a total capacity of 229 million pairs and a utilization rate of 97% expected in 2024 [3]. - The company is focusing on improving operational efficiency through training and automation, which is expected to enhance gross margins in the upcoming quarters [3]. Cash Flow and Inventory Management - As of Q1 2025, the company reported a 12.5% increase in inventory year-on-year, with inventory turnover days decreasing by 5.1 days to 74.1 days [4]. - The net operating cash flow for Q1 2025 was 1.21 billion yuan, approximately 1.6 times the net profit for the same period [4].
华利集团：新工厂爬坡影响Q1盈利表现，Q2有望环比改善-20250429