ZHESHANG SECURITIES·2024-07-04 02:02Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The report highlights that the company has announced a share placement by its controlling shareholder to meet funding needs and support charitable initiatives. The placement involves transferring 400 million shares at a price of HKD 4.31 per share, totaling HKD 17.24 billion [2] - The company's financial performance for the fiscal year ending March 31, 2024, exceeded expectations, with revenue of HKD 23.21 billion (up 38.4% year-on-year), operating profit of HKD 4.40 billion (up 55.6%), and net profit attributable to shareholders of HKD 3.07 billion (up 43.7%). The strong performance was driven by excellent results in the down jacket segment and steady growth in OEM and women's wear businesses [2] - The company is set to enhance its marketing efforts for the new fiscal year, particularly in the sun protection clothing segment, with the launch of a new generation of professional sun protection garments and participation in high-profile fashion events [2] Summary by Sections Financial Performance - For the fiscal year ending March 31, 2024, the company reported revenue of HKD 23.21 billion, a year-on-year increase of 38.39%, and net profit of HKD 3.07 billion, reflecting a growth of 43.74% [3][8] - The operating profit margin reached 22.3%, marking a historical high, with the down jacket business generating revenue of HKD 19.52 billion, up 43.8% [2] Future Projections - Revenue projections for the fiscal years ending March 31, 2025, 2026, and 2027 are estimated at HKD 26.25 billion, HKD 29.66 billion, and HKD 33.45 billion, respectively, with year-on-year growth rates of 13% [3][8] - Net profit for the same periods is projected to be HKD 3.51 billion, HKD 3.98 billion, and HKD 4.50 billion, with corresponding growth rates of 14% and 13% [3][8] Valuation - The report indicates that the company's current valuation is attractive, with a projected P/E ratio of 11.5 for FY2025, 10.1 for FY2026, and 8.9 for FY2027, highlighting its low valuation, steady growth, and high dividend yield [2][3]