Zhitong Financial APP learned that Tianfeng Securities released a research report that maintained Virgin's (02199) "buy" rating, and expected FY2023-25 income to be 81.7, 93.9 / 10.8 billion yuan (the same below), with a net profit of 7.2 / 860 million yuan after adjustment. With the smooth start of the five-year Plan, the proportion of the company's sports business continues to increase, innovative technology leads the rapid growth of industry demand, the diversified development of consumer electronic accessories, and the establishment of a more robust product and brand partnership. Lingerie business and footwear business is expected to continue to grow steadily.

According to the report, the company's Vietnam base has entered a period of efficiency improvement, with significant manufacturing advantages. Continue to use the optimization experience of the first three plants as a model to speed up the allocation of other plants in Vietnam and increase the comprehensive gross profit margin; the average efficiency of the six plants in Vietnam has been further improved, leading to an increase in gross profit margin. As of September 30, 2022, the company had about 39300 employees in Vietnam. After accelerated localization, the proportion of local employees in Vietnam reached 85 per cent, and Vietnam's gross output value accounted for 80 per cent of total revenue. At the same time, the industrial park in Zhaoqing New area is expected to be relocated according to the established schedule and optimize capacity allocation.

The bank said that under the challenges of declining consumer atmosphere, tight supply chain and squeezed inventory release on the way, Virgin has further highlighted its comprehensive competitiveness in process technology research and development, supply chain advantages, product innovation and so on over the years.1)Increase revenue and reduce expenditure and actively respond to macro challenges.2)Maintain the long-term framework of five-year planning and development, and maintain the steady development of diversified business.3)Process innovation opens up a unique development route to consolidate the advantages of differentiation and competitiveness.4)In line with the regional and scale advantages of Vietnam's supply chain, material and equipment innovation establishes a unique threshold.5)The advantage of product innovation is outstanding, and e-commerce sales are developing rapidly.