24Q1 revenue of 800 million yuan increased 15%, net profit to mother increased 45% 24Q1 revenue of 800 million, up 15% year on year, net profit to mother of 80 million, up 45% year on year after deducting net profit from non-return to mother, increased 46% year on year. The company is currently taking orders continuing the previous trend and overall improvement. We believe that the increase in revenue and profit is mainly due to the better order and capacity utilization in Q1 this year, and the low base for the same period last year.
The 24Q1 gross profit margin was 37.9%, up 0.2 pct year over year. During the 24Q1 period, the rate was 26.5% reduced by 2.3 pct; of these, the sales rate was 9.5% reduced by 0.4 pct; the management rate was 13% increased by 0.5 pct; the R&D rate was 4.5% increased by 0.4 pct; and the financial rate was -0.4% reduced by 2.8 pct; the net profit rate was 9.9%, up 2.3 pct year on year.
Market share continues to increase and accelerate the advancement of the global strategy
In the context of the 23 years of downstream brand inventory, the company has maintained steady revenue growth, focusing on major customers, improving customer satisfaction, and continuing to increase its market share; at the same time, it has accelerated its global strategy, optimized customer protection, and maintained steady growth in international business for 23 years; in addition, the company focused on market segmentation, leveraged the comprehensive competitive advantage of large accessories, quickly entered the customer supply chain system, effectively broadened the business development space, and new categories grew significantly.
Vietnam's production capacity is gradually climbing, giving full play to the advantages of intelligent manufacturing and scale
On the one hand, the company actively explores customer markets and brand designation; on the other hand, it focuses on improving internal factory management, improving efficiency in matters such as process sorting and employee training. The company aims to be a smart factory, fully implements production standardization, equipment intelligence, and management digitization to create an industrial collaboration platform. The level of digital intelligence manufacturing is leading the world, and guarantees upstream and downstream collaboration in the industrial chain with efficient and flexible intelligent manufacturing capabilities to provide faster and better support for downstream customers.
In terms of production capacity, the company's Vietnam Industrial Park opened in late March '24 and has received orders, produced and delivered normally. The theoretical production capacity of the first phase of Vietnam's plan is to produce 150 million zippers and 500 million sets of metal buckles per year.
Maintain profit forecasts and maintain “buy” ratings
The company continues to focus on the two cores of global layout and digital intelligent manufacturing, guided by market demand and customer demand, and continuously strengthens its core competitive advantage; the company's revenue for 24-26 years is 45/51/60 billion yuan, respectively, net profit to mother is 6.4/71/860 million yuan, EPS is 0.55/0.61/0.74 yuan/share, and the corresponding PE is 22/20/16X, respectively.
Risk warning: Increased competition risks in the industry; risks arising from changes in the macroeconomic situation; risk of losing key talents.