Investment Rating - The report maintains a "Buy" rating for the company with a current price of HKD 4.58 [1]. Core Insights - The company achieved impressive performance in 2023, with revenue and net profit increasing by 21% and 29% year-on-year, respectively [4][9]. - The company is expected to continue its focus on the mass market and maintain steady growth, benefiting from upcoming major sports events [8][9]. Financial Performance - In 2023, the company reported total revenue of RMB 8.423 billion and a net profit attributable to shareholders of RMB 961 million, with an EPS of RMB 0.47 [4]. - The gross margin improved by 0.6 percentage points to 41.1%, while the operating margin increased by 1.0 percentage points to 16.4% [4][5]. - The company plans to distribute a final cash dividend of HKD 0.139 per share, resulting in an annual payout ratio of 40.2% [4]. Revenue Breakdown - Revenue from adult products, children's clothing, and other categories accounted for 75%, 23%, and 2% of total revenue, respectively, with year-on-year growth rates of 17.4%, 35.7%, and 8.0% [5]. - Online sales grew by 38% year-on-year, while offline sales increased by 15.6% [5][8]. Market Strategy - The company is enhancing its product matrix and brand positioning, focusing on professional sports and youth demographics [8]. - It has launched new products and increased marketing efforts, including sponsorship of major events like the Hangzhou Asian Games [8][9]. Future Outlook - The company has raised its profit forecasts for 2024 and 2025, expecting net profits to increase by 7% and 6%, respectively [9]. - The projected EPS for 2024, 2025, and 2026 are RMB 0.55, RMB 0.64, and RMB 0.72, with corresponding P/E ratios of 8x and 7x for 2024 and 2025 [9].
2023年业绩点评：23年业绩表现亮眼，期待继续深耕大众市场、稳健前行