Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a revenue of 8.2billionfor2024,ayear−on−yearincreaseof3.7390 million, up 43% year-on-year. The manufacturing segment generated 5.6billioninrevenue,an112.6 billion [1][5] - Manufacturing business orders are robust, with a significant increase in shipments and a narrowing decline in average selling price (ASP). The ASP for 2024 was 20.3,down58.2 billion and a net profit of 390million.Themanufacturingsegmentcontributed5.6 billion, while the retail segment accounted for 2.6billion[1][5]−InQ4alone,thecompanyreportedarevenueof2.1 billion, an 11% increase year-on-year, but net profit dropped by 52% to 70millionduetoincreasedoperationalcostsandtaxdisputes[1][3]ManufacturingBusiness−Themanufacturingsegment′srevenuefor2024was5.6 billion, with a shipment volume of 260 million pairs, reflecting a 17% increase. The ASP remained stable at 20.3[2][5]−Themanufacturinggrossmarginwas19.92.6 billion, down 10% year-on-year, but the decline in Q4 was only 2%. The company managed to improve its gross margin to 34.2% through effective discount management [4][5] - The number of offline stores decreased to 3,448, with same-store sales down 17.1%. However, online sales showed resilience, particularly on platforms like Douyin [4][5] Earnings Forecast and Valuation - The company is expected to achieve revenues of 8.4billion,9.0 billion, and 9.6billionfor2025,2026,and2027,respectively,withcorrespondingnetprofitsof454 million, 498million,and529 million [5][12] - The projected P/E ratios for the next three years are 6.0, 5.5, and 5.2, with a dividend payout ratio of 69% for 2024, translating to a dividend yield of 10% [5][12]
