Investment Rating - The report assigns a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [9]. Core Insights - The company achieved a revenue of 14.346 billion HKD in 2023, reflecting a year-on-year growth of 10.94%, and a net profit of 1.03 billion HKD, up 11.75% year-on-year, which aligns with expectations [4]. - The main brand's revenue showed steady growth, with the children's segment expanding rapidly. The main brand, Xtep, generated 11.947 billion HKD in 2023, growing 7.4% year-on-year, while the children's segment opened 183 new stores, totaling 1,703 [4]. - The fashion sports segment experienced high growth domestically, with a revenue increase of 14.3% to 1.603 billion HKD, driven by brand revitalization efforts [4]. - The professional sports segment saw a remarkable growth of 98.9%, primarily due to strong demand for Saucony products [4]. - The company's gross margin improved by 1.3 percentage points to 42.2%, with a significant reduction in inventory levels by over 25% compared to mid-year [4]. Financial Performance and Forecast - The company forecasts revenue growth of over 10% for 2024, with net profits projected at 1.2 billion HKD, reflecting a 14.8% increase [4]. - The earnings per share (EPS) is expected to rise from 0.40 HKD in 2023 to 0.45 HKD in 2024 [4]. - The price-to-earnings (P/E) ratio is projected to decrease from 11.7 in 2023 to 10.2 in 2024, indicating a favorable valuation trend [4]. - The report anticipates a net profit growth of 12.2% and 11.4% for 2025 and 2026, respectively [4].
2023年业绩符合预期，库存改善期待24年健康增长