产品矩阵丰富，深度绑定全球头部品牌客户。晶苑持续通过内部开发及策略性收购扩充品类，目前已形成五大类别的多元化产品组合，涵盖休闲服、运动及户外服、牛仔服、贴身内衣、毛衣，2023 年各板块收入占比28%/22%/21%/18%/10%。公司与全球前十大服饰品牌中的7 家深度合作，包括优衣库、Levis、GAP、Vectoria's Secret 等，尤其16 年拓展运动服品类后接连与Nike、Adidas、Lululemon 建立合作，2023 年前五大客户收入占比62%。Key investment points
Report guide: After 50 years of deep cultivation in the garment industry, Jingyuan has continuously consolidated its comprehensive strength and expanded its circle of capabilities. Currently, it has built a diversified product portfolio spanning five categories and a multi-country manufacturing platform, and has established long-term partnerships with leading global clothing brands, building Jingyuan's leading position in the ready-to-wear manufacturing industry.
The world's leading garment manufacturer with more than 50 years of experience in garment making. Jingyuan International was founded in 1970 and listed on the Stock Exchange in 2017. It has 23 factories in 5 countries around the world, employs about 0.065 million people, has an annual garment production capacity of 0.47 billion pieces, an operating income of 2.18 billion US dollars in 2023, and a net profit of 0.16 billion US dollars. In the global garment manufacturing industry, Jingyuan ranks first in terms of output and second in terms of output value.
The product matrix is rich and deeply binds the world's leading brand customers. Jingyuan continues to expand its categories through internal development and strategic acquisitions. Currently, it has formed a diversified product portfolio in five major categories, covering casual wear, sportswear and outdoor wear, jeans, underwear, and sweaters. Each sector accounts for 28%/22%/21%/18%/10% of revenue in 2023. The company has deep cooperation with 7 of the world's top ten apparel brands, including Uniqlo, Levis, GAP, and Vectoria's Secret. In particular, after expanding the sportswear category in '16, the company successively established partnerships with Nike, Adidas, and Lululemon. The top five customers accounted for 62% of revenue in the first five of 2023.
Forward-looking layout of overseas production capacity, vertical integration enhances fast reaction capability. The company began expanding overseas production capacity in the early 70s. It established production bases in Vietnam, Bangladesh, Cambodia and Sri Lanka in 2003/2006/2011/2018, respectively. In 23, the proportion of overseas employees reached 82%. Among them, Vietnam was the largest production base, accounting for 49% of employees. The company began a vertical layout in 2021, expanding the upstream fabric business through acquisitions and self-building cloth factories, and integrating supply-side production capacity to shorten delivery times.
Profit forecasting and valuation
As a global garment leader with outstanding capabilities, Jingyuan has diverse product categories, perfect global production capacity layout, and binding leading high-quality brand customers. In particular, the newly developed sportswear and outdoor clothing categories are still growing rapidly. We believe the company can expect to continue to increase its market share and achieve steady growth on traditional racetracks.
We expect the company to achieve 2.47/2.81/3.18 billion US dollars in 24-26, an increase of 13.5%/13.8%/13.0% year-on-year; net profit to mother of 0.198/0.231/0.267 billion US dollars, an increase of 21%/17%/16%, corresponding to 8/7/6 times PE, which is significantly lower than the leading garment industry. Taking into account the company's steady growth expectations and low water level valuation, it was covered for the first time and given a “buy” rating.
Risk warning
Risk of fluctuations in raw material prices, risk of changes in global trade policies, failure to sales expectations or transfer orders from major customers
