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The footwear industry is booming, Nike's main foundry company Winterthur Group (9910) has strong order growth in 2Q21~3Q21, benefiting from the steady growth of US sales and the recovery of the mainland market. The legal person is optimistic and expects profitability in the second quarter. Challenge the new high over the same period, and the profit in a single quarter is expected to grow substantially.

In May, the new crown epidemic in India was severe, and Winterthur's Indian plant was suspended. However, the current resumption rate is gradually increasing. The outside world is optimistic that it is expected to resume 100% work after mid-June.

Because there is room for adjustment in the order arrangement, the original deferred part should be able to catch up with the release in the second quarter. At present, the three factories in Vietnam, Indonesia, and China are all in normal operation and are not affected by the epidemic.

Taiwan still goes to work normally and strictly controls the epidemic.

As for the soaring raw materials, Winterthur has stocks of basic materials. The increase in oil prices has little impact on the cost. If it continues to rise in the future, it can still reflect the cost to customers in the future.

Winterthur does not make specific regional differences in the purchase of raw materials, and most of the shoe materials are supplied nearby. At present, the impact of the lack of cabinets still exists, but the impact has been reduced compared to the end of last year.

Winterthur’s April self-settled operating profit was 950 million yuan, and after-tax EPS was 0.74 yuan, which was almost the same as March’s 0.75 yuan. Although the appreciation of the Taiwan dollar in April reduced some profits, it was under the recovery of the industry and major customers to pull goods. , Winterthur's revenue and earnings were the same as the previous month.

Yu Qi, another shoe manufacturer, said that despite the lack of ships, lack of cabinets and other factors affecting the shipment schedule, the Cambodian plant was suspended in early May due to the epidemic, which affected short-term production schedules (normal operations have been resumed in mid-May. ), coupled with the sharp fluctuations in the exchange rate in May, but orders from major customers were booming, and the operating performance in May still hit a record high for the same period. Yu Qi's first quarter revenue, operating margin, and operating profit all set new highs over the same period of the year.