\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 79 Huali Industrial Group Company Limited(300979) )
Summary of this issue:
The world’s leading professional manufacturer of sports shoes. The company is mainly engaged in the development, design, production and sales of sports shoes. It is the world’s leading professional manufacturer of sports shoes, and the downstream binds the customers of global high-quality sports brands. In recent years, the company’s business volume has continued to expand and its revenue scale is leading in the industry. By the end of 2021, the number of employees of the company has reached 151200. More than 20 shoe factories have been set up in Vietnam, Dominica and other places, with an annual output of 210 million pairs of shoes. In 2021, the company achieved a revenue of 17.47 billion yuan, an increase of 25.40% and a net profit attributable to the parent company of 2.768 billion yuan, an increase of 47.34%, and its performance maintained rapid growth.
Quality management, innovative research and development, and customer-oriented to build a high-quality supply chain. In terms of products and services, the company takes customers as the core, continues to strengthen quality management, improve innovation and R & D capability, improve supply chain management, and constantly optimize customer service, so as to improve customer stickiness and promote the growth of orders and revenue. The company has established a quality management strategy, and the product qualification rate is at the high level of the industry to meet the needs of customers; The company has established a mechanism to encourage internal R & D and innovation, and has issued more than ten million yuan of rewards, significantly improving production efficiency and controlling production costs; The company establishes efficient and strict customer service process standards, creates high-quality services, timely handles customer complaints and maintains customer relations. The occurrence rate and processing efficiency of customer complaints are better than those of competitors.
Pay attention to low-carbon, efficient and circular economy, and strengthen the company’s leading edge. The company pays attention to environmental protection, energy conservation and circular economy. While undertaking social responsibility and performing the leading role, it also reduces production costs, improves production efficiency, strengthens customer stickiness, improves the company’s industry competitiveness and promotes the stable growth of performance. In terms of environmental management, the company actively establishes a sound environmental management system, leads its competitors in terms of water saving and sewage discharge, and realizes an efficient and clean development model; In terms of energy control, the company formulates long-term energy strategies at the headquarters and factory levels, defines energy conservation and emission reduction measures, improves energy efficiency and uses renewable energy, and controls production costs; In terms of realizing circular economy, the company takes leadership support, development of sustainable products, waste reduction and recycling as four elements to achieve the group’s goal of “zero waste and minimum impact”, create a low-carbon, efficient, safe and healthy operation mode, meet the needs of brands for environment-friendly supply chain and help expand customer orders.
People oriented, safety first, pay attention to employees’ health and career development. The company attaches importance to employee safety and has continuously increased its investment in safety production management in recent years. In 2021, it invested a total of 883808 million yuan, an increase of 291.97% at the same time. The company has established a predictable and agile risk management system through cross departmental participation, making full use of external resources and strengthening business integration, realizing the vision of zero accidents. In addition, the company attaches importance to employees’ professional health and rights protection, and has established a management process of occupational harmful factors and an effective internal communication mechanism to comprehensively improve employees’ professional satisfaction and meet the career development needs of various talents.
Profit forecast and investment rating. As a global leader in sports shoe manufacturing, the company cooperates with suppliers and partners, continues to take social responsibility, and basically leads its main competitors in quality management, energy conservation and emission reduction, environmental protection, circular economy and so on. In the future, the company will continue to strengthen its leading advantages in cost control, R & D and innovation, efficiency improvement and customer service, improve the stickiness of customer orders and promote the continuous growth of revenue. We maintain the company’s revenue forecast for 20222024 to be 21.4342578129.205 billion yuan, with an increase of 22.69% / 20.28% / 13.28%, and the net profit attributable to the parent company to be 34.74/41.50/4.634 billion yuan, with an increase of 25.50% / 19.46% / 11.67%. We are optimistic about the long-term growth of sports shoes and clothing tracks. The company has obvious advantages in the industry, strong certainty of performance growth, large long-term development space and maintains the “buy” rating.
Risk factors: concentrated production areas, rising labor costs, and the spread of covid-19 pneumonia in Vietnam.
