Jinwu Financial News | Xiniu Securities pointed out that Winner Fashion announced that it recorded a 20% year-on-year increase in revenue and net profit in 2023, respectively, in line with the bank's previous expectations. The increase in performance was mainly due to increased sales of products from multiple channels, as well as product improvements and operational optimization.
According to the bank, total retail sales of clothing products increased by about 15.4% year-on-year in 2023, with growth in the fourth quarter being particularly significant. The strong quarterly recovery brought ideal results to Winner Fashion, and more importantly, brought confidence to the Group and dealers in the context of several seasons of inventory removal. We believe that distributors' performance at the order fair in the first half of this year will be positive, but the uncertain macro environment is still a factor we are concerned about, and we need more evidence to make our attitude more optimistic.
The bank predicts that the Group will continue to achieve stable endogenous growth in 2024, and that the dividend ratio will remain at a high level even with the business plan unchanged. Stable business performance and dividend ratio will enable the Group to maintain considerable attractiveness in the Hong Kong market. Therefore, we have reaffirmed the Group's “buy” rating and maintained the target price at HK$16.78 per share.