Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$ 16.78 [2][3] Core Insights - The company achieved a total revenue of RMB 6.91 billion in 2023, with a slight increase in gross margin to 75.3%, leading to a net profit growth of 121.8% year-on-year [2][8] - The company plans to announce quarterly revenue starting from Q1 2024, reflecting confidence in its operations [2] - The outlook for 2024 is stable, with potential surprises in 2025 due to double-digit growth in its brands and a rebound in retail sales in China [2][8] - The company is focusing on brand strategy, investing approximately 3% of its revenue in brand promotion, which includes activities like fashion week events and selecting brand ambassadors [2][8] Financial Performance - Revenue projections for the upcoming years are as follows: RMB 7.88 billion in 2024, RMB 8.45 billion in 2025, and RMB 9.06 billion in 2026, with annual growth rates of 14.0%, 7.3%, and 7.2% respectively [8][12] - The gross profit is expected to increase from RMB 5.21 billion in 2024 to RMB 6.83 billion in 2026, maintaining a gross margin around 75% [8][12] - Net profit is projected to grow from RMB 832.6 million in 2024 to RMB 1.12 billion in 2026, with annual growth rates of 12.5% and 14.1% respectively [8][12] Market Position - The company has a market capitalization of approximately HK$ 9.38 billion, with a price-to-earnings ratio of 9.9x and a price-to-sales ratio of 1.9x [5] - Compared to industry peers, the company maintains a competitive gross margin of 75.3%, which is higher than the average of 56.7% in the sector [5]
来年平稳发展，具备新的催化剂