Investment Rating - The report maintains a "Buy" rating for the company, with a 6-month target price of 74.95 HKD [6] Core Views - The company demonstrated operational resilience despite a 10.1% YoY decline in revenue to 24.97 billion RMB in 2023, primarily due to reduced demand in the European and US markets and brand customers' inventory reduction [1] - Net profit attributable to shareholders decreased slightly by 0.1% YoY to 4.557 billion RMB, while gross margin improved by 2.2 percentage points to 24.3% due to increased efficiency in overseas factories and reduced pandemic-related expenses [1] - The company is expected to benefit from the recovery of overseas apparel demand as brand customers complete inventory reduction, with projected revenue of 28.76/32.98/37.70 billion RMB for 2024-2026 [4] Business Performance Breakdown By Product Category - Sportswear sales decreased by 13.6% YoY due to declining demand in Europe and the US [1] - Casual wear sales dropped by 1.4% YoY, mainly due to reduced demand in Japan and other markets [1] - Underwear sales increased by 30.2% YoY, driven by rising demand in Japan and other markets [1] - Other knitwear sales fell by 41.6% YoY due to the discontinuation of mask production, but excluding masks, sales increased by 0.4% YoY [1] By Region - China revenue grew by 0.7% YoY to 7.1 billion RMB, accounting for 29% of total revenue [1] - Europe revenue decreased by 19% YoY to 5.0 billion RMB, representing 20% of total revenue [1] - US revenue declined by 20% YoY to 3.9 billion RMB, making up 16% of total revenue [1] - Japan revenue fell by 6% YoY to 3.7 billion RMB, contributing 15% to total revenue [1] - Other regions' revenue decreased by 8% YoY to 5.3 billion RMB, accounting for 21% of total revenue [1] Operational Highlights - Overseas factories accounted for 53% of total garment output in 2023, with Cambodia contributing 26%, up 4 percentage points YoY [2] - Overseas employees represented 57% of the total workforce, an increase of 5 percentage points YoY [2] - The company improved supply chain efficiency through enhanced information sharing and optimized production site selection [3] Strategic Initiatives - The company is actively considering expanding overseas production capacity beyond existing facilities in Vietnam and Cambodia to better meet global customer demand [4] - Efforts are being made to accelerate the application of intelligent manufacturing and digital management, while promoting product diversification and high-end development [4] - The company is increasing R&D investment in innovative and functional products, with a focus on applying new fiber materials in high-end textile fabric development [4]
运营韧性凸显，看好市占提升