Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [1]. Core Insights - The manufacturing segment shows improved order visibility and a gradual increase in gross margin [1]. - The company reported a revenue of USD 1.904 billion in Q4 2023, a decrease of 4.7% year-on-year, while net profit increased by 422.9% to USD 137 million [1]. - For the full year 2023, total revenue was USD 7.890 billion, down 12.0%, with a net profit of USD 275 million, down 7.3% [1]. - The gross margin for 2023 was 24.4%, an increase of 0.57 percentage points year-on-year, and the net margin was 5.12%, up 0.47 percentage points [1]. Summary by Sections Financial Performance - Q4 2023 revenue was USD 1.904 billion, down 4.7% year-on-year; net profit was USD 137 million, up 422.9% [1]. - Full year 2023 revenue was USD 7.890 billion, down 12.0%; net profit was USD 275 million, down 7.3% [1]. - The company’s gross margin for 2023 was 24.4%, up 0.57 percentage points; net margin was 5.12%, up 0.47 percentage points [1]. Revenue Breakdown - Revenue from sports/outdoor shoes was USD 4.041 billion, down 17.4%, accounting for 87% of total revenue; casual shoes and outdoor sandals generated USD 616 million, down 24.5%, accounting for 13% [1]. - Revenue by channel: 27% from all-channel sales, 21% from franchise stores, 13% from online stores, and 52% from direct stores and others [1]. Manufacturing Insights - Manufacturing revenue for 2023 was USD 5.059 billion, down 18.4%, with a gross margin of 19.2% [1]. - The gross margin improved quarterly from 16.8% in Q1 to 22.8% in Q4 2023 [1]. - The company’s production capacity utilization rate for 2023 was 79%, down 8 percentage points year-on-year, but increased by 6 percentage points in Q4 [1]. Retail Operations - The retail segment reported a revenue of USD 2.831 billion in 2023, up 2.3%, with a gross margin of 33.7%, down 4.0 percentage points [4]. - The net profit for the retail segment increased by 403%, with a net margin improvement of 1.5 percentage points [4]. - The company is focusing on digital transformation and has seen a 40% increase in revenue from its digital platform, contributing 20.9% to offline direct sales [3][4].
制造端订单能见度好转，毛利率逐季提升