Huafu(002042) 天风证券·2024-06-04 02:07Investment Rating - The report assigns a rating of "Accumulate" with a downward adjustment [15][16]. Core Views - The domestic economy is expected to continue its recovery in 2024, benefiting from improved domestic and international market demand, which will aid in revenue and profit recovery for the company [3]. - The company will persist in its strategy of "focusing on core business, sharing industry, and developing new businesses," while enhancing its front-end and back-end supply chains and developing new computing power projects [3][27]. - The company is the largest manufacturer and supplier of colored yarn globally, focusing on mid-to-high-end products and providing value-added services [7]. Financial Summary - The company's revenue for 2023 was 13.66 billion yuan, a decrease of 5.5% year-on-year, with a net profit attributable to the parent company of 66.78 million yuan [24][31]. - The forecast for net profit attributable to the parent company for 2024-2026 is adjusted to 108.11 million yuan, 208.27 million yuan, and 306.05 million yuan, respectively [7][31]. - Earnings per share (EPS) for the same period are projected to be 0.06 yuan, 0.12 yuan, and 0.18 yuan, with corresponding price-to-earnings (P/E) ratios of 64, 34, and 23 times [7][31]. Revenue Breakdown - Yarn revenue was 58.44 billion yuan, down 2.23%, with a gross margin of 6.03%, down 0.83 percentage points [12]. - Supply chain revenue was 74 billion yuan, down 7.86%, with a gross margin of 1.65%, down 0.69 percentage points [12]. - Sock product revenue increased by 8.04% to 3.75 billion yuan, with a gross margin of 21.41%, down 5.32 percentage points [12]. Market Conditions - The textile industry is facing challenges due to a complex external environment, including weak post-pandemic consumption recovery and geopolitical tensions affecting raw material prices and international orders [26]. - The company is actively seeking structural growth opportunities and innovating to improve overall performance [26].