旺季将迎订单转化出货，展望利润增速将逐季回升

Investment Rating - The report maintains a "Buy" rating for Xin'ao Co., Ltd. [3][25] Core Views - The company reported Q1 2024 revenue of 1.1 billion yuan, a year-on-year increase of 12.5%, and a net profit attributable to shareholders of 96 million yuan, up 6.6% year-on-year, aligning with expectations [3] - The gross profit margin for Q1 2024 was 19.9%, an increase of 0.6 percentage points year-on-year, while the expense ratio was 8.45%, up 1.3 percentage points year-on-year, primarily due to foreign exchange losses from euro-denominated assets [3] - The company is experiencing strong demand in both wool and cashmere segments, with significant sales growth in 2023, indicating robust operational performance [3] - The report forecasts a gradual increase in profit growth throughout 2024, supported by a healthy order backlog and ongoing production expansion [3] Summary by Sections Financial Performance - In Q1 2024, Xin'ao Co., Ltd. achieved a revenue of 1.1 billion yuan, reflecting a 12.5% increase year-on-year, and a net profit of 96 million yuan, which is a 6.6% increase year-on-year [3][16] - The company’s gross profit margin for 2023 was 18.6%, with a notable gross margin of 25.1% for wool yarn, significantly higher than cashmere and wool tops [3][22] Business Segments - Wool yarn segment revenue in 2023 was 2.5 billion yuan, up 11.3% year-on-year, with a sales volume of 15,000 tons, while cashmere segment revenue was 1.22 billion yuan, up 14.1% year-on-year, with a sales volume of 1,996 tons [3] - The company is actively expanding its cashmere blended yarn product line to enhance market competitiveness, despite a temporary decline in average selling prices [3] Growth Prospects - The company is accelerating production expansion domestically and internationally, with new capacity expected to come online in 2024, including a 15,000 spindles wool yarn capacity in Tongxiang and a 20,000 spindles capacity in Vietnam [3] - The report projects net profits for 2024-2026 to be 450 million, 542 million, and 632 million yuan respectively, with corresponding price-to-earnings ratios of 12, 10, and 8 times [3][16]