Investment Rating - The report maintains a "Buy-B" rating for the company [3][7] Core Views - The company's revenue and net profit in 2023 exceeded the levels of 2021, with net profit growth significantly outpacing revenue growth due to positive operating leverage [1] - The company achieved a retail turnover of 8 8 billion yuan in 2023, a year-on-year increase of 25 71% [1] - The company's gross margin has steadily increased for five consecutive years, reaching 75 3% in 2023, up 0 18 percentage points year-on-year [4][6] - The company's net profit margin improved to 12 05% in 2023, an increase of 4 3 percentage points year-on-year [6] - The company aims to achieve a retail turnover of 10 5 billion yuan in 2024 [7] Revenue and Profit Performance - In 2023, the company achieved revenue of 6 912 billion yuan, a year-on-year increase of 22 05%, and net profit attributable to shareholders of 838 million yuan, a year-on-year increase of 119 17% [1][3] - The company's basic earnings per share (EPS) in 2023 was 1 24 yuan, a year-on-year increase of 69 23% [3] - The company declared a final dividend of 70 HK cents per share, with a full-year dividend payout ratio of 51% [3] Channel Performance - Offline channels demonstrated strong endogenous growth, with revenue from direct-operated stores increasing by 25 33% year-on-year to 5 56 billion yuan, accounting for 80 4% of total revenue [2] - The average store efficiency of direct-operated stores increased by 28% year-on-year to 3 65 million yuan per store [2] - Online channels achieved revenue of 969 million yuan, a year-on-year increase of 8 46%, with strong growth in the Douyin channel, which saw a 38 69% increase in revenue [2] Brand Performance - The Koradior, NAERSI, and NEXY CO brands each achieved revenue exceeding 1 billion yuan in 2023, collectively accounting for approximately 70% of the company's total revenue [4] - The NEXY CO brand achieved revenue of 1 004 billion yuan, a year-on-year increase of 27 91% [4] - The FUUNNY FEELLN brand grew relatively slowly, with revenue increasing by 11 95% year-on-year to 136 million yuan [4] Financial Data and Valuation - The company's inventory turnover days decreased by 23 days to 233 days in 2023 [6] - The company's operating cash flow in 2023 was 1 569 billion yuan, a year-on-year decrease of 7 8% [6] - The company's P/E ratio for 2024-2026 is estimated at 8 5x, 7 4x, and 6 7x, respectively [7] - The company's ROE improved to 18 3% in 2023, up from 9 4% in 2022 [8]
线下渠道展现内生增长，毛利率连续五年稳步提升