Investment Rating - The report maintains a "Strong Buy" rating for the company [1] Core Views - The company experienced a revenue decline of 10.12% year-on-year in 2023, with a total revenue of 24.97 billion yuan. However, the second half of 2023 showed signs of recovery, with a revenue of 13.41 billion yuan, a decrease of only 5.50% year-on-year, and a net profit of 2.43 billion yuan, an increase of 10.67% year-on-year [1] - The company's gross margin improved to 24.3% in 2023 from 22.1% in the previous year, indicating operational improvements [1] - The company is optimistic about 2024, expecting a full utilization of production capacity and continued diversification of products, including expansion into chemical fiber and woven products [1] Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 24.97 billion yuan, down 10.12% year-on-year, with a net profit of 4.56 billion yuan, down 0.12% year-on-year [1] - The gross margin for 2023 was 24.3%, an increase of 2.2 percentage points from the previous year [1] - The company expects net profits for 2023-2025 to be 5.36 billion, 5.98 billion, and 6.61 billion yuan respectively, with growth rates of 17.61%, 11.54%, and 10.55% [1][5] Market Dynamics - The company faced a decrease in orders due to major clients reducing inventory, but the decline in orders has slowed in the second half of 2023 as international brands near the end of their inventory reduction phase [1] - Revenue from the largest market, mainland China, saw a slight increase of 0.71%, while revenues from the EU and the US declined by 19.11% and 20.38% respectively [1] Client and Product Strategy - The company has diversified its client base, with the top four clients accounting for 79.62% of revenue in 2023, down 2.42 percentage points from the previous year. This is attributed to increased collaboration with domestic sports brands [1] - The company is actively expanding its product offerings and client relationships, including partnerships with emerging brands like Lululemon [1]
23年下半年已好转，24年展望乐观