The company announced its 2023 annual report. In 2023, the company's revenue was 13.661 billion yuan, up 2.47% year on year, and net profit to mother was 1,122 billion yuan, up 76.06% year on year. The company's basic earnings per share were $0.42. The company plans to pay a cash dividend of 3 yuan for every 10 shares, with a dividend ratio of 72.07%.
Revenue from casual wear declined slightly, while revenue from children's clothing increased. By product, the company's casual wear business revenue in 2023 was 4.171 billion yuan, a year-on-year decrease of 2.58%. The revenue of the children's clothing business was 9.373 billion yuan, an increase of 4.92% over the previous year. In terms of channels, the number of the company's casual wear stores in 2023 was 2,703, a decrease of 48 from the same period last year, and the number of children's clothing stores was 5,234, a decrease of 155 compared to the same period last year. In addition, the company's online sales revenue in 2023 was 6.228 billion yuan, a year-on-year decrease of 3.51%. In 2023, the company's online sales revenue accounted for 45.59%.
The company's gross margin increased, and the expense ratio decreased during the period. The company's gross profit margin in 2023 was 44.02%, an increase of 2.72 percentage points over the previous year. It is expected mainly due to increased sales discounts on new products and an increase in the share of same-price products in the region. In terms of period expenses, the company's sales expenses rate in 2023 was 24.11%, a year-on-year decrease of 0.36 percentage points, a year-on-year reduction of 0.36 percentage points, a year-on-year increase of 0.03 percentage points, and a year-on-year decrease of 0.75 percentage points.
The quality of the company's operations has been greatly improved. In 2023, the company's inventory turnover days were 155 days, a year-on-year decrease of 26 days, and the number of accounts receivable turnover days was 34 days, a decrease of 3 days year-on-year. Net operating cash flow was $1,941 million, up 65.08% year over year.
We are optimistic that the company's 2024 results will continue to grow steadily. In 2024, the company will focus on optimizing product operation mechanisms, improving product operation efficiency, speeding up channel construction, strengthening advantageous regions, digging deeper into potential markets, enhancing digital operation capabilities, and accelerating overseas business layout.
Profit forecasting and investment advice. EPS is expected to be 0.49 yuan/share, 0.57 yuan/share, and 0.65 yuan/share in 24-26, respectively. Referring to the company's average price-earnings ratio over the past five years, the company was given a price-earnings ratio of 17 times in 24 years, with a reasonable value of 8.25 yuan/share, maintaining the company's “buy” rating.
Risk warning. There is a risk that terminal retail will be sluggish, industry competition will intensify, and inventory clean-up will not meet expectations.