The company released the 2023 annual report and the 2014 quarterly report

The company's 24Q1 revenue was $537 million, a decrease of 12.0%; net profit to mother was 110 million yuan, a decrease of 33.0%.

The company's 23Q4 revenue was 803 million yuan, up 17.9%; net profit to mother was 80 million yuan, up 761.1%; revenue in '23 was 2,649 million yuan, up 10.4%; and revenue to mother was 494 million yuan, up 28.3%.

In '23, the company paid 421 million yuan in cash dividends, with a dividend rate of 85.27%.

Revenue by channel in '23, online revenue was 397 million, up 29.5%, gross profit margin 76.8%, up 1.0 pct; offline revenue was 2,248 billion yuan, up 7.7%; gross profit margin was 74.1%, down 1.2 pct.

By brand, DA revenue was 1,426 million yuan, up 8.9%, gross profit margin 75.2%, same decrease of 1.1 pct; DM revenue of 152 million yuan, same decrease of 7.4%, gross profit margin 80.8%, same increase of 0.1 pct; DZ revenue of 1,020 million yuan, same increase of 14.5%, gross profit margin 72.3%, same decrease of 0.6 pct; RA revenue of 47 million yuan, gross profit margin of 81.9%, same decrease of 0.2 pct.

The gross profit margin for 23 years was 74.5%, a decrease of 0.9 pct; the net profit margin was 18.6%, an increase of 2.6 pct.

The sales/management/ R&D/ finance rate was 40.5%/7.1%/3.2%/-2.1%, -3.2pct/+0.1pct/+0.2pct/ -0.2pct.

Channel expansion fills the gap in the market, and endogenous extension builds fashion group companies to strategically develop high-quality dealers to fill market areas where direct terminals have not yet reached, and initially formed a national marketing network scale with “Tier 1 and 2 cities as the core, and Tier 3 and 4 cities combined”.

In the future, the company will continue to fully implement excellent retail support, continuously strengthen marketing efforts, consider building a smart supply chain, try to create or introduce new brands and businesses, and build an endogenous epitaxial fashion group; adhere to innovation and quality DNA to enhance brand power; strictly select and optimize designer teams, and focus on all-round design talent training to continue to increase investment in product R&D and accelerate R&D innovation.

Adjust profit forecasts to maintain “buy” ratings

The company has implemented intelligent infrastructure applications for digital consumer operations, deepened the digital capabilities of supply chain business, improved the connection between the front and back ends of products, and provided data insight and intelligent decision support for management.

Furthermore, the company took the lead in building a digital consumer operation system and continuously optimized it, achieved differentiated and refined operation for consumers, and clarified the operating groups and marketing priorities of different brands. Considering the pressure on the company's 24Q1 performance, we adjusted our profit forecast. The company's net profit for 24-26 is $51/57/650 million yuan (the value was 575/656 million yuan 24-25 years ago), EPS is 1.1/1.2/1.4 yuan/share (the value was 1.2/1.4 yuan/share 24-25 years ago), and the corresponding PE is 12/11/9X.

Risk warning: risk of damage to brand image; risk of declining performance due to macroeconomic factors; risk of dealer management and stable cooperation, etc.