\u3000\u3000 Huali Industrial Group Company Limited(300979) (300979)
Core view
Huali Industrial Group Company Limited(300979) : one of the world's leading manufacturers of sports shoes. The company focuses on the development and manufacturing of sports shoes, deeply cultivates the process of cold adhesive shoes and vulcanized shoes and forms technical advantages. At present, the company has established long-term and stable cooperative relations with global well-known sports shoes and clothing enterprises such as Nike, Deckers, VF, Puma and underarmour. In 2019, the company produced more than 180 million pairs of shoes, making it one of the leading manufacturers of sports shoes in the world. The founder Zhang Congyuan family has 50 years of experience in shoe manufacturing industry. The senior management team and core technicians have rich experience and tacit cooperation. The division of labor of subsidiaries is clear and coordinated. Under the company's efficient management and continuous optimization of business structure, the company's operation has grown steadily.
The supply chain of sports shoes is highly centralized, and the leader builds barriers with the advantages of R & D and customers. Scale: benefiting from policy support & enhanced health awareness, the global sports shoe market is booming. In the short term, the demand for home sports and outdoor sports will boost the rapid growth of the industry. In the long term, the penetration rate of sports shoes is expected to increase, and the shoe consumption in developing countries has more potential. Pattern: with the complex production process of sports shoes and the trend of professional division of labor between brand operation and manufacturing, the orders of international well-known sports brands are inclined to core suppliers, and the manufacturing end is highly concentrated. At present, the leading manufacturers of sports shoes build core barriers by virtue of R & D ability and customer relationship. Capacity distribution: benefiting from the advantages of resource cost and friendly foreign trade environment, Southeast Asia has undertaken the transfer of sports shoes manufacturing industry, and the industry leaders have made capacity layout in advance.
Huali Industrial Group Company Limited(300979) core competitive advantages: high efficiency, excellent production capacity and strong customers. After years of deep industrial cultivation, the company has significant core competitive advantages: (1) outstanding development ability, effectively shorten the delivery time and improve efficiency. The development and design system of the company is mature and the reserve of professional talents is rich; Years of tacit cooperation with customers to accurately understand the brand design concept; Continuously improve the automation level and effectively improve production efficiency. (2) The pace of fund-raising and production expansion was accelerated, and the layout in Southeast Asia continued to reduce costs. The company arranged the production capacity of Vietnam north earlier, and the price of manpower and factors has more advantages; IPO fund-raising will accelerate the construction of production capacity in Southeast Asia and help the company prosper in production and marketing. (3) Continuously optimize the customer structure and form a strong binding with high-quality key customers. At present, the company has reached long-term cooperative relations with many international sports leaders to ensure the stability and scale of orders; At the same time, actively expand new customers with high potential and lock in the momentum of long-term growth.
Investment suggestion: cultivate internal skills, build high barriers, accelerate production expansion, seize the first opportunity, and maintain the "buy" rating. The company has formed strong core competitiveness in development and design, automatic production and high-quality customer binding. It is expected to accelerate the growth by taking advantage of the trend of leisure sports. With the steady expansion of production in Southeast Asia and the booming production and marketing, it is expected to promote the rapid growth of the company's performance. We maintain the company's profit forecast. It is estimated that the net profit attributable to the parent company in the year 21 / 22 / 23 will be RMB 2.763/35.47/4.303 billion, corresponding to EPS of RMB 2.37/3.04/3.69 respectively, corresponding to PE of the current stock price of 35 / 27 / 22 times, maintaining the "buy" rating.
Risk tips: trade friction risk, rising labor cost risk, key customer order loss risk, etc.
