Investment Rating - The report maintains a "Buy" rating for the company [1][6]. Core Views - The company reported a revenue of 24.97 billion, a year-on-year decline of 10.1%, and a net profit of 4.56 billion, a slight decrease of 0.1%. The performance in the second half of 2023 showed a revenue decline of 5.8% but a net profit increase of 10.7%, indicating better-than-expected overall profitability for the year. The dividend payout ratio for 2023 was 60.3% [1]. - The decline in revenue was primarily due to reduced orders for sports products in Europe and the US, while the domestic market performed better. Specifically, revenue from sports, leisure, underwear, and other knitted products saw declines of 13.6%, 1.4%, and 41.6%, respectively, while underwear revenue grew by 30.2% [1]. - The gross margin exceeded market expectations, increasing by 2.2 percentage points to 24.3% for 2023, driven by improved capacity utilization and operational efficiency in overseas factories [1]. - The outlook for 2024 remains optimistic, with projected sales growth in the mid-teens percentage range and gradual recovery in gross margin, supported by replenishment demand from overseas brands and expansion of market share among existing clients [1][6]. Financial Summary - The company’s earnings per share (EPS) for 2023-2025 are projected to be 3.03, 3.69, and 4.32 yuan, respectively, with a discounted cash flow (DCF) target valuation of 97.65 HKD [2][6]. - Key financial metrics include a gross margin of 24.3%, a net profit margin of 18.3%, and a return on equity (ROE) of 14.3% for 2023 [3][10].
毛利率逐步修复，2024年业绩展望乐观