The company released its 2023 annual report and 2024 quarterly report
The company's 24Q1 revenue was 1,268 million yuan, up 17.6%; net profit to mother was 362 million yuan; up 20.4%; withheld from non-return mother of 351 million yuan, an increase of 21.9%.
The company's 23Q4 revenue was 740 million yuan, up 12.1%; net profit to mother was 153 million yuan, a decrease of 0.9%; deducted from non-return mother of 142 million yuan, an increase of 3.9%. Revenue in '23 was $3,536 million, an increase of 22.6%; due to mother of $911 million, an increase of 25.2%; after deducting 867 million yuan, an increase of 29.4%.
The company plans to distribute a cash dividend of 571 million yuan (tax included), with a dividend rate of 62.7% for 23 years.
Revenue for 23 years was divided into sales channels, with online sales revenue of 195 million, up 16.1%, gross profit margin of 70.6%, same increase of 7.2 pct; direct sales revenue of 2,395 million yuan, up 34.6%, gross profit margin of 83.1%, same increase of 1.0 pct; franchise sales revenue of 918 million yuan, same decrease of 2.1%, gross profit margin 70.3%, same decrease of 0.7 pct.
The gross profit margin in '23 was 78.6%, up 1.2pct; the net profit margin was 25.8%, up 0.5pct.
Sales/management/finance/R&D expenses were 37.1%/7.8%/-0.8%/3.5%, respectively, +1.2pct/+1pct/-0.5pct/+0.04pct.
As of the end of '23, there were 607 direct-run stores, a net increase of 28; 648 franchised stores, a net increase of 36.
The new decade has started anew, leading the high-end apparel industry segment
① The company focuses on T-shirt brands, increases product development and innovation, and rapidly expands market size: continue to focus on T-shirt brands to create differentiated super categories and super single products; ② Systematically enhance brand image and build soft power of brand culture: Systematically enhance brand image and achieve “double upgrade”, that is, upgrade a new generation of store images and upgrade visual recognition systems; ③ continue to develop the Biyin Löven brand and the Beinleven golf brand to lay out shopping centers and build model stores; ④ Continue to deepen digital transformation and continuously improve organizational management efficiency: continue to increase capital investment in digital construction, Realize the internationalization of multi-brand information, integration of business and finance, intelligent supply chain management, and refined member management, and greatly improve the company's operating efficiency and profitability.
Maintain profit forecasts and maintain “buy” ratings
We continue to emphasize the company's differentiated positioning advantages, develop golf series to embrace young groups and sports tracks, and focus on high channel quality. We expect the company's net profit to be 12/14/1.8 billion yuan for 24-26 years, 2.1/2.5/3.1 yuan/share for EPS, respectively, and 14/12/10X for PE, respectively.
Risk warning: Store expansion is falling short of expectations, increased labor costs, impact of international brand competition, etc.