Hongdou Industrial(SH:600400) Great Wall Securities·2024-05-09 00:02Investment Rating - The report maintains a rating of "Accumulate" for Hodo Co., Ltd. [2][9] Core Views - Hodo's brand reform is progressing, and the share buyback plan reflects confidence in future development [2][8] - The company achieved a significant increase in net profit in 2023, primarily due to improved gross margins and reduced credit impairment losses [2][3] - Hodo's revenue decreased slightly in 2023, attributed to a decline in its fabric business [2][4] Financial Performance - In 2023, Hodo reported revenue of 2,330 million yuan, a year-on-year decrease of 0.47%, while net profit reached 30 million yuan, up 99.51% year-on-year [2] - The gross margin improved to 36.33%, an increase of 2.26 percentage points year-on-year [3] - The company’s net profit margin increased to 1.34%, up 0.64 percentage points year-on-year [3] Product and Market Strategy - Hodo's clothing, dyeing, and fabric segments reported revenues of 2,070 million yuan, 69 million yuan, and 83 million yuan respectively, with clothing revenue growing by 1.39% [4] - The number of Hodo brand direct-operated stores increased to 476, with a net addition of 77 stores [4] - The company is focusing on enhancing its channel operations and online presence to capture a broader customer base [4][8] Future Outlook - The report forecasts EPS for 2024, 2025, and 2026 to be 0.03 yuan, 0.03 yuan, and 0.04 yuan respectively, with corresponding P/E ratios of 96.4X, 80.8X, and 71.3X [9] - Hodo aims to strengthen its core competitiveness by enhancing product comfort and upgrading customer experience [8][9]