On June 13th, GLP reported that as a leading company in China's sports shoes outsourcing industry, Huali Group (300979.SZ) has a long-term valuation upside potential due to steady industry demand, high gross profit under the scale and globalization operation, and expectations of product ASP and production capacity price increases. Considering the company's superior profitability compared to comparable companies under its scale and globalization, strong customer stickiness, and long-term logic of both price and volume increases, we initiate coverage with a 'buy' rating. In addition, the company is excellent at controlling sales and management expenses under scale effects and efficient management, while continuously increasing research and development investment to improve operational efficiency and ensure long-term profit growth.
研报掘金丨华源证券：首予华利集团“买入”评级，估值长期看具备提升空间
Research Reports JIN|Huayuan Securities: Initiates Coverage of Huali Group with a "Buy" Rating, Long-term Valuation Upside.
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