2023第四季度收入增长16%，发布越南扩产公告

Investment Rating - The investment rating for the company is "Buy" [1][14][40] Core Views - The company achieved a positive net profit growth of 2% in 2023, reaching 270 million yuan despite a 3% decline in revenue to 2.28 billion yuan. The growth was driven by a 19% increase in net profit from cotton socks, while seamless apparel saw a 58% decline in net profit [1][40] - The fourth quarter of 2023 showed a significant recovery with a 16% revenue growth, leading to a turnaround in net profit to 70 million yuan [1][40] - The company plans to expand its production capacity in Vietnam with an investment of 550 million yuan, aiming to generate an annual revenue of 1.07 billion yuan and a net profit of 149.8 million yuan once the project is completed [1][40] Summary by Sections Financial Performance - In 2023, the company's revenue decreased by 3% to 2.28 billion yuan, with cotton socks revenue increasing by 3% to 1.59 billion yuan, while seamless apparel revenue fell by 15% to 630 million yuan [1] - The gross profit margin for the year was 26.0%, slightly up year-on-year, with cotton socks' gross margin improving and seamless apparel's margin declining by 2.7 percentage points [1] - The company maintained stable sales and management expense ratios, with a decrease in foreign exchange gains impacting the ratio by 0.6 percentage points [1] Cash Flow and Capital Expenditure - The company reported a healthy free cash flow of 300 million yuan in 2023, significantly up from the previous year [1] - Capital expenditures for 2023 were 90 million yuan, a decrease from 250 million yuan in 2022 [1] Future Outlook - The company anticipates a clear recovery in its fundamentals for 2024, with orders expected to rebound as overseas brand inventory levels normalize [1] - The profit forecast for 2024-2026 has been raised, with expected net profits of 310 million yuan, 360 million yuan, and 410 million yuan, representing year-on-year growth rates of 16.2%, 15.6%, and 13.9% respectively [1][40] - The target price has been adjusted to 11.9-12.8 yuan, corresponding to a 14-15x PE for 2024 [1][40]