Peacebird(SH:603877) ZHONGTAI SECURITIES·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the next 6 to 12 months compared to the benchmark index [27]. Core Views - The company has shown improvement in operational quality post-reform, with expectations for gradual recovery in terminal retail [1]. - The company has implemented significant organizational changes and cost control measures, leading to enhanced profitability despite revenue pressures in 2023 [4]. - The company is anticipated to benefit from a recovery in consumer demand and improved brand synergy in 2024, further enhancing profitability [22]. Financial Performance Summary - The total share capital is 474 million shares, with a market price of 16.07 yuan, resulting in a market capitalization of 7,615 million yuan [2]. - For the fiscal year 2023, the company reported revenues of 7,792 million yuan, a decrease of 9% year-on-year, while net profit increased by 127% to 422 million yuan [20]. - The company’s gross margin improved significantly, with an overall gross margin of 54.13% for 2023, reflecting a year-on-year increase of 5.91 percentage points [22]. - The company’s net profit for 2024 is projected to be 564 million yuan, with a year-on-year growth of 34% [20]. Brand and Channel Performance - The women's clothing segment saw a revenue decline of 12.01%, while men's clothing increased by 4.16% [2]. - Online sales faced challenges, with a 23.39% decrease in revenue, while offline direct sales improved with a 7.92 percentage point increase in gross margin [11][21]. - The company closed 252 underperforming stores, resulting in a total of 1,175 direct stores, which contributed to improved store efficiency [11]. Inventory and Cash Flow Management - The company reported a significant reduction in inventory, with a year-on-year decrease of 27.8%, leading to healthier inventory turnover [23]. - Operating cash flow for 2023 was 1,276 million yuan, with a focus on maintaining a low inventory level and efficient cash management [24].