HTSC·2024-07-02 02:07Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.38 [8][9]. Core Insights - The company reported a strong FY24 performance with a net profit increase of 43.7% year-on-year to RMB 3.074 billion, driven by significant revenue growth and improved operational leverage [2][3]. - The company declared a final dividend of HKD 0.2 per share, resulting in a total payout ratio of 81% and a dividend yield exceeding 5% [2]. - Future earnings per share (EPS) estimates for FY25, FY26, and FY27 are projected at RMB 0.33, RMB 0.38, and RMB 0.42 respectively, with a price-to-earnings (PE) ratio of 15x for FY25 [2][3]. Financial Performance - For FY24, the company achieved a revenue of RMB 23.214 billion, reflecting a year-on-year growth of 38.4%, with the main brand's revenue increasing by 42.7% to RMB 16.785 billion [3][4]. - The gross margin remained stable at 59.5%, while the net profit margin improved to 13.2%, up 0.5 percentage points year-on-year [4]. - Cash flow from operating activities saw a significant increase of 141% year-on-year, reaching RMB 7.339 billion, with net cash rising by 49% to RMB 12.047 billion [5]. Business Segments - The main brand and the "Xuezhongfei" brand both exhibited strong growth, with the latter's revenue increasing by 65.3% to RMB 2.019 billion [3]. - The company is focusing on product innovation and channel optimization, which has led to improved single-store efficiency despite a net reduction of 186 stores [3][4]. - The OEM, women's wear, and diversified businesses also reported revenue growth of 16.4%, 16.6%, and 0.3% respectively [3]. Future Outlook - The company aims to continue its high-quality growth trajectory by enhancing brand leadership, product innovation, and channel upgrades in the down jacket segment [6]. - The OEM business will deepen cooperation with existing core clients while expanding new customer resources [6]. - The women's wear segment will focus on clear brand positioning and operational efficiency to achieve healthy growth [6].