Jinwu Financial News | Huaxi Securities released a research report saying that Winner Fashion (03709) released the 2023 results announcement. The company achieved revenue, net profit to mother, and net operating cash flow of 69.12/8.38/ 1,569 billion yuan respectively in 2023, up 22.05%/119.17%/-7.79% year-on-year. The performance was in line with market expectations. The decline in cash flow was mainly due to a decline in accounts payable.
According to the bank, the revenue growth rate of the company's three major brands in 2023 was 20.73%/18.38%/27.91%, accounting for 70% of revenue; the revenue growth rate of the four major growth brands, Lakoradior/Elsewhere/Cadidl/Naersilin, was 33.53%/20.35%/23.35%/22.33%, respectively. The company's four growing brands currently have less than 200, and there is still plenty of room to open stores. It is expected that the pace of opening stores will gradually resume this year.
The bank continued that there is still room for improvement in the company's net interest rate. Maintain the 24/25 revenue forecast of $8,244/9.822 billion, with an additional 26-year revenue forecast of $11.675 billion; maintain the 24-25 net profit forecast of $1,064/1.90 billion, and increase the 26-year net profit forecast of $1,687 billion; corresponding to maintaining an EPS of $1.51/1.97 for 24-25 and an additional EPS2.40 for 26 years; closing price of HK$13.88 on March 26, 2024 corresponding to HK$13.88 for 24-26 PE, respectively, and maintaining “buy” “Enter” rating.