2023年收入增长12%，羊绒业务盈利水平改善

Investment Rating - The report maintains a "Buy" rating for Xin'ao Co., Ltd. (603889.SH) [1][14][45] Core Insights - In 2023, the company achieved a revenue growth of 12.4% to 4.44 billion yuan, with significant improvements in cash flow and profitability in its cashmere business [1][12][45] - The company is positioned as a leading manufacturer in the wool and cashmere spinning industry, benefiting from structural changes in product offerings and a recovery in overseas demand [1][45] - The report forecasts continued growth in net profit for 2024-2026, with expected figures of 470 million, 550 million, and 630 million yuan, representing year-on-year growth rates of 15.0%, 17.7%, and 15.0% respectively [1][45] Summary by Sections Financial Performance - Revenue for 2023 reached 4.44 billion yuan, with cashmere yarn revenue increasing by 14% to 1.22 billion yuan, while wool yarn revenue grew by 11% to 2.50 billion yuan [1][12] - The gross profit margin slightly decreased by 0.2 percentage points to 18.6%, with cashmere yarn margin improving by 1.3 percentage points to 12.7% [1][12] - The net profit attributable to shareholders rose by 3.7% to 400 million yuan, with a net profit margin of 9.7% [1][12] Operational Insights - The company maintained stable expense ratios, with a slight increase of 0.2 percentage points due to reduced foreign exchange gains [1][12] - In Q4 2023, revenue continued to show double-digit growth, although gross margins declined due to falling wool prices and increased depreciation from asset changes [1][12] Future Outlook - The company anticipates a robust order growth in its wool spinning business in 2024, with production capacity operating at full load and plans for expansion in domestic and overseas markets [1][45] - The target price is set between 8.4 and 9.0 yuan, corresponding to a PE ratio of 13-14x for 2024 [1][45]