DAHAO TECHNOLOGY(603025)2024-08-29 07:39Performance Overview - In the first half of 2024, the textile and apparel industry saw 272 large-scale enterprises achieve a revenue of 15.4 billion CNY, marking an 18% year-on-year growth [5] - Profit totals increased by 57% year-on-year, with fixed asset investments in the textile and apparel sector rising by 14% [5] - The overall industry trend indicates a recovery, with expectations for continued growth in the second half of the year [5] Profitability Insights - The company's net profit margin increased by 6 percentage points, while gross profit margin rose by 3 percentage points in the first half of 2024 [7] - The growth in gross margin is attributed to a shift towards high-value products, with expectations to maintain or improve this level throughout the year [7] - Effective cost management has contributed to stable operating expenses, allowing for potential further increases in net profit margin [7] Market Demand and Trends - Both domestic and international demand for the company's products is improving, with a balanced growth observed in both markets [6] - The company anticipates a strong demand for its automated products, particularly in the embroidery machine segment, with a current replacement rate of 15% to 20% expected to rise to 30% as technology matures [9][12] - The company is actively expanding its overseas market presence, particularly in the Middle East and Europe, aiming to replace foreign brands with domestic products [13] Product Development and R&D - The company invests heavily in R&D, with hundreds of projects annually, ensuring continuous innovation and adaptation to market needs [15] - Product upgrades occur approximately every 2 to 3 years, with current market trends influencing the development of new high-speed embroidery machines [10] - The company maintains a low sales expense growth rate compared to revenue growth, indicating efficient cost management in sales operations [15] Future Outlook - The textile and apparel equipment industry typically experiences cyclical trends, with expectations for sustained growth in the coming years if the current upward cycle continues [6] - The company remains optimistic about achieving its annual performance targets, supported by a strong order backlog and favorable market conditions [8][9] - The overall market sentiment for the domestic innovation and security sector is improving, with expectations for continued growth driven by government initiatives [9]