产品结构优化&降本措施奏效，24H1 净利率实现大幅提升2024H1 公司归母净利润和扣非归母净利润分别为4.17 和3.82 亿元，分别同比+54%和+56%，均落于业绩预告偏上区间。2024H1 公司销售净利率和扣非销售净利率分别为12.96%和11.82%，分别同比+2.83 和+2.72pct，盈利水平明显提升。1）毛利端：2024H1 销售毛利率为31.81%，同比+3.40pct，大幅提升，主要系产品结构变化、成本下降及汇率变动所致。分产品来看，2024H1 工业缝纫机、裁床及铺布机、衬衫及牛仔自动缝制设备毛利率分别为30.19%、42.40%和37.89%，分别同比+3.35、+3.76 和-1.26pct。分地区来看，2024H1 国内和海外毛利率分别为27.41%和36.83%，分别同比+3.99 和+4.27pct。2）费用端：2024H1 期间费用率为17.06%，同比+1.03pct，其中销售、管理、研发和财务费用率分别同比-0.37、+0.06、+0.08 和+1.26pct，财务费用率明显增长，主要系汇兑收益同比减少。Incident Overview
The company released its 2024 mid-year report.
Domestic demand accelerated in 24H1. The Q2 revenue performance was better than the previous forecast that 2024H1 achieved operating income of 3.235 billion yuan, +20% year over year, of which Q2 was 1.606 billion yuan, +30% year over year. It was basically flat month-on-month. The off-season was not weak, better than our previous expectations. By business, the distribution of 2024H1 industrial sewing machines, cutting and paving machines, and automatic shirt and denim sewing equipment achieved revenue of 28.02, 3.24, and 100 million yuan, respectively, +19%, +25%, and +33%, respectively. By region, 2024H1 achieved domestic and overseas revenue of 17.73 billion yuan and 1,454 billion yuan respectively, +42% and +1%, respectively. Domestic demand increased rapidly. Against the backdrop of a weak recovery in the textile industry, the company achieved rapid growth on the revenue side, mainly benefiting from the company's adherence to the explosive product strategy, rapid market seizure, and rapid increase in market share.
Product structure optimization & cost reduction measures worked. The 24H1 net interest rate achieved a significant increase in 2024H1's net profit to mother and net profit of non-return to mother of 4.17 million yuan and 382 million yuan, respectively, +54% and +56%, respectively, compared with the same period as the performance forecast. 2024H1's net sales interest rate and net profit margin after deducting non-sales were 12.96% and 11.82%, respectively, compared with +2.83 and +2.72 pct, respectively. The profit level increased markedly. 1) Margin side: The gross margin of 2024H1 sales was 31.81%, +3.40pct year-on-year, a significant increase, mainly due to changes in product structure, cost reduction, and exchange rate changes. By product, the gross margins of the 2024H1 industrial sewing machine, cutting and paving machine, and automatic shirt and denim sewing equipment were 30.19%, 42.40%, and 37.89%, respectively, +3.35, +3.76, and -1.26pct, respectively. By region, 2024H1's domestic and overseas gross margins were 27.41% and 36.83%, respectively, +3.99 and +4.27pct year-on-year, respectively. 2) Expense side: The expense ratio during the 2024H1 period was 17.06%, +1.03pct year on year. Among them, sales, management, R&D, and financial expense ratios were -0.37, +0.06, +0.08, and +1.26pct, respectively. The financial expense ratio increased significantly, mainly due to the year-on-year decrease in exchange earnings.
Terminal demand is recovering rapidly & market share is rising rapidly. I am optimistic about the company's industrial sewing machine growth elasticity 1) Demand side: Currently, it is still at the bottom of the cycle recovery where domestic and export sales resonate. Q3 is the traditional peak season for domestic sewing machinery. Overseas recovery accelerates marginally, and I am optimistic that demand for sewing machinery will pick up faster in the second half of the year. (1) Domestic: 2024H1 led the recovery overseas. 2024H1 fixed asset investment completed in the textile, garment and apparel industry was +14%, and the revenue and profit of the 2024H1 textile industry were +5% and +24%, respectively. The quality of terminal operations improved, and gradually entered the inventory replenishment cycle. We are optimistic that demand will pick up at an accelerated pace during the Q3 peak season. (2) Overseas: From January to June 2024, China's industrial sewing machine exports were +5% year-on-year, with -6%, +16% and +30% year-on-year, respectively. Overseas demand recovered significantly in May-June, and I am optimistic that the boom will pick up at an accelerated pace in the second half of the year.
2) Supply side: If production is used as a statistical caliber, we estimate that the company's industrial sewing machine market share will be about 32% in '23. The company adheres to the strategy of explosives. It was officially launched in '23, leading the transformation of the industrial sewing machine market. Once the 616 “Guojiao Wang” was launched in 2024, the 5-hour order exceeded 0.48 billion yuan, further verifying the market recognition of the Kuaifan series, and is optimistic that subsequent companies will increase their market share and flexibility.
Investment advice
We maintained the company's 2024-2026 operating income forecasts of 68.43 billion yuan, 90.64 and 10.890 billion yuan, respectively; maintained net profit forecasts of 776, 10.57 and 1,294 million yuan, respectively, and +44%, +36%, and +22%, respectively; maintained EPS forecasts of 1.60, 2.18, and 2.67 yuan, respectively, and the 2024/8/12 stock price of 26.54 yuan was 17, 12, and 10 times PE, respectively.” “Gain” rating.
Risk warning
The sewing machinery industry is declining, market competition is intensifying, etc.
