Bags / Shoes & Accessories

According to Huacheng Import and Export Data Observation, in 2022, the revenue and profit of shoe giants Baocheng (9904), Fengtai (9910), and Zhiqiang KY (6768) reached historic highs due to the benefits of deferred orders and active replenishment by customers.

However, sports brand customers have been undergoing inventory adjustments since Q4 2022, and shoe manufacturers have stated that the order atmosphere they are currently experiencing is still conservative. Under the uncertainty of demand growth this year (2023), they will be more cautious in evaluating their capital expenditure plans, as reported by Huacheng Import and Export Data Observation.

For Fengtai, the company maintains its long-term goal of annual growth of 7-10%. However, regarding the expansion rate in 2023, the company stated that it is likely to be lower than the average level, and capital expenditure will not recover too quickly in the short term unless there is a significant rebound in consumption power.

According to Huacheng Import and Export Data Observation, Fengtai's current production capacity distribution is: 9% in China, 14% in Indonesia, 51% in Vietnam, and 26% in India.

The operation headquarters of Zhiqiang KY Group is located in Taichung City, Taiwan, China, China, with six factories in Vietnam and Cambodia.

The new factory project in Indonesia, which has received high market attention, is ongoing and is expected to be completed in the second half of 2023. However, the company stated that it will observe demand in the future to determine whether the machines will be stationed. Based on current orders, relying on the production capacity of Vietnam and Cambodia is still sufficient to support the project. Huacheng Import and Export Data Observation Report.

As for Baocheng's lack of clear figures on the expansion direction for 2023, the company emphasizes that it will continue to pay attention to changes in the external business environment, moderately expand production capacity, and maintain maximum flexibility in capacity allocation.

According to the legal person's estimation, Baocheng will produce about 270 million pairs of shoes in 2022, and its production base will be located in Changhua, Taiwan, Chinese Mainland, Vietnam and Indonesia. The company will continue its diversified layout strategy. At present, the latest plan is for the evaluation of the establishment of factories in "India". The company emphasizes that this plan is still in the initial evaluation stage, and it will take time before it really starts mass production. Huacheng Import and Export Data Observation Report.