Investment Rating - The investment rating for the company is "Buy" [1][4][19] Core Views - The company has shown a significant recovery in revenue and profit in 2023, with a revenue increase of 7.7% to 20.06 billion CNY and a net profit growth of 450.6% to 490.4 million CNY [1][5][19] - The gross margin has decreased by 2.2 percentage points to 33.7%, primarily due to the strategy of clearing old inventory and an increase in the proportion of lower-margin franchise channels [1][5] - The operating profit margin improved by 1.5 percentage points to 3.7%, and the net profit margin increased by 2.0 percentage points to 2.4%, reaching the highest level since the pandemic in 2020 [1][5][19] Summary by Sections Financial Performance - In Q4 2023, revenue increased by 8.9% to 4.62 billion CNY, and the net profit turned positive to 180 million CNY [1][11] - The company implemented strict discount controls and improved inventory structure, leading to a Q4 gross margin increase of 0.3 percentage points to 35.7% [1][11] - The operating profit margin in Q4 rose by 3.1 percentage points to 4.8%, and the net profit margin increased by 4.1 percentage points to 3.9% [1][11] Store Efficiency and Growth - The company optimized its store network, reducing the number of stores but improving store efficiency, with same-store sales growth of 12.1% in Q4 [1][14] - The number of direct stores decreased by 570, but the proportion of high-quality large stores increased by 2 percentage points to 21% [1][14] - The "Fanwei" store concept saw a strong revenue growth of 40%, contributing 13.4% to total revenue and 23% to offline direct sales in Q4 [1][17] Future Outlook - The company expects continued improvement in operating profit margins over the next three years, with projections for gross margin and operating profit margin to increase by 1 percentage point in 2024 [1][18][19] - The company aims to maintain a healthy inventory level with an expected inventory turnover of around 150 days in 2024 [1][18] - The overall sales strategy will focus on enhancing both online and offline channels, with an emphasis on optimizing brand structure and introducing new partnerships [1][18]
2023年盈利改善，经营利润率有望持续提升