|
| 
KINETIC DEV(1277)
Analysis¡G
For the six months ended 30 June 2024, Kinetic Development Group Limited (01277) recorded a total revenue of RMB2532 million, representing a significant year-on-year increase of 69.7% as compared to the corresponding period last year. The increase in the company`s revenue was mainly due to the resumption of normal production levels at the company`s Dafanpu Coal Mine. Despite the lower average selling price of the company`s 5000 kcal coal products compared to the same period last year, the resumption of normal production levels at the Dafanpu Coal Mine was the primary driver behind the increase in the company`s revenue. The company recorded a profit attributable to equity shareholders RMB1095 million, representing an increase of 90.7% as compared to the corresponding period last year. With regard to the coal market, it is anticipated that the domestic coal supply will continue to moderately exceed demand in the second half of 2024. Nevertheless, the advantageous prices of imported coal will persist while the volume of imports will stay high. Furthermore, as coal stockpiles at downstream ports and power plants may continue to stand at a high level throughout the year, there will be abundant supply of coal. Demand for coal is expected to be relatively weak, mainly due to the sluggish economic recovery in general. In addition, Yong`an Coal Mine and Weiyi Coal Mine, which are operated by the company and located in Ningxia Hui Autonomous Region, are currently under construction. Yon`an Coal Mine is expected to be put into operation in the second half of 2024 and reach full capacity in 2027, while Weiyi Coal Mine is expected to be put into operation in the second half of 2025 and reach full capacity in 2027. The company will be able to tap into the coking coal business, and further increase the production capacity of coking coal by 2.1 million tons per year, thus breaking through the limitations arising from operating a single coal mine with a single coal type, and the coal mine project in Ningxia is expected to be one of the main driving forces of the growth in results in the future.
Strategy¡G
Buy-in Price: $1.25, Target Price: $1.40, Cut Loss Price: $1.14
|
|
Report Review of August 2024
Sectors: TMT, Semiconductors, Consumer & Healthcare ¡]Eric Li¡^ TMT, Semiconductors, Consumer & Healthcare ¡]Eric Li¡^This month I released reports of 361 DEGREES INT. (1361.HK). During 2023FY, 361 Degrees International Limited (361 Degrees) recorded a revenue of RMB8,423.3mn, increasing 21.0% YoY. Profit attributable to the equity shareholders of the Company was RMB961mn, representing a YoY increase of 28.7%. A total dividend of HK20.4 cents per ordinary share (equivalent to RMB18.7 cents), representing a dividend payout ratio of 40.2%. In terms of product segment, sales of the company's two core product lines, namely footwear and apparel, increased by 23.0% YoY and 9.8% YoY respectively. For the year under review, the proportions of total revenue of footwear and apparel sales were slightly increased from 41.0% to 41.7% YoY and slightly decreased from 35.2% to 31.9% YoY of the total revenue respectively. This was mainly due to the increase in proportion of sales revenue from 361 Degrees Kids from 20.7% to 23.2% of the total revenue for the year under review, which in turn affected the proportion of sales of various products to total revenue. The average wholesale price (AWP) of footwear and apparel edged up by 3.0% and 0.5% year-on-year respectively. The increase in footwear's and apparel's AWP was mainly due to the upward adjustments of the wholesale prices of the existing products across different product lines in order to cover the increase in cost of production and reflect the continuous brand image enhancement; the upgrade of product mix by launching a variety of new products with a higher AWP; and the increase in proportion of sales revenue generated from the e-commerce business which has a higher AWP than the sales made to distributors, above reasons contributed to increase in AWP as compared to that of last year. In addition, the sales volume of footwear and apparel products increased by 19.4% and 9.4% YoY, respectively. In recent years, as China's consumer preferences leaned towards specialisation, diversification, and cost effectiveness, the company positions as a "professional, youthful, and internationalised" brand. The company has built a diversified brand matrix based on professional functions and its own-branded IP. With 2024 bringing numerous international and domestic sports events, including the highly anticipated Paris Olympics, which are expected to stimulate a broader participation in sports and increase consumer demand. We expect 2024-2025 EPS to be RMB0.49 and RMB0.53 respectively, with PT of HKD4.02, implies a FY2024E P/E of 7.47x (~2-yrs historical average). Our investment rating is ¡§Accumulate¡¨. 
Click Here for PDF format...
|
|
|
|
| Stock Code |
H share
Price |
A share
Price |
H share
discount |
| | | |
|
Information contained herein is based on sources that Phillip Securities (Hong Kong) Limited and/or its affiliates ( the ¡§Group¡¨) believe to be accurate. The Group does not bear responsibility for any loss occasioned by reliance placed upon the contents hereof. The Group (or its employees) may have interests in relevant investment products. For details of different products¡¦ risks, please view the Risk Disclosures Statement on http://www.phillip.com.hk.
If you DO NOT wish to receive further marketing emails from us, please click HERE to opt-out.
ª©Åv©Ò¦³¡A ½¦L¥²¨s¡C
Copyright(C) 2024 Phillip Securities (HK) Ltd. All Rights Reserved.
|
