渠道优化顺利，短期利润承压，期待后续修复 2024 年公司收入 65.89 亿元/净利润 4.74 亿元，同比分别-5%/-43%。1） 2024 年：公司收入/净利润分别为 65.89/4.74 亿元，同比分别-5%/-43%。2） 2024H2：公司收入/净利润分别为 32.7/1.9 亿元，同比分别-9%/-51%，零售承压 背景下，我们判断负向经营杠杆使得公司短期盈利表现下降。3）盈利质量方面： 2024 年公司毛利率同比+1.1pct 至 76.4%；销售费用率同比+4.3pct 至 59.0%， 主要系店铺升级及广告营销推广费用提升综合所致；管理费用率同比+1.5pct 至 10.3%，主要系股份奖励开支增加；综合以上，2024 年公司净利率同比-4.9pct 至 7.2%。4）公司 2024 年合计股利支付率约为 53%，以 2025 年 3 月 26 日收盘价 计算的股息率约为 4.9%。 品牌表现分化，La Koradior 稳健成长，NAERSI、NEXY.CO 相对稳定。公司旗 下八大高端女装客群定位与价格带互补，充分参与市场竞争，短期消费环境波动， 品牌表现分化，分品牌来看：①2024 ...

Financial Performance - For the year ended December 31, 2024, the group's revenue and gross profit were RMB 6,588.54 million and RMB 5,035.55 million, representing a decrease of 4.68% and 3.26% respectively compared to the year ended December 31, 2023[2]. - The profit for the year was RMB 474.09 million, a decrease of 43.06% or RMB 358.54 million compared to RMB 832.63 million for the year ended December 31, 2023, resulting in a net profit margin of 7.20% (2023: 12.05%) [2]. - Total comprehensive income for the year was RMB 447.21 million, compared to RMB 805.54 million in 2023[4]. - Basic earnings per share for the year were RMB 0.683 (2023: RMB 1.237)[3]. - The total tax expense for the year was RMB 88,440,000, down from RMB 161,969,000 in 2023, a decrease of approximately 45.4%[34]. - The pre-tax profit for 2024 was RMB 562,528,000, down from RMB 994,601,000 in 2023, indicating a decrease of approximately 43.4%[34]. - Net profit attributable to equity holders for the year ended December 31, 2024, was RMB 468.50 million, a decrease of 44.10% from RMB 838.17 million in 2023, resulting in a net profit margin of 7.20%[60]. Revenue Breakdown - Total revenue for the year ended December 31, 2024, was RMB 6,588.54 million, a decrease of 4.68% from RMB 6,912.30 million for the year ended December 31, 2023[49]. - Revenue from the sale of clothing and accessories accounted for the entire revenue, with RMB 6,588,536,000 recognized at a point in time[25]. - Direct retail sales accounted for approximately 78.50% of total revenue in 2024, down from 80.43% in 2023[49]. - E-commerce revenue increased by 16.57% to RMB 1,129.32 million in 2024, compared to RMB 968.78 million in 2023, driven by increased online sales and marketing efforts[50]. - Revenue from distributors decreased by 25.17% to RMB 287.27 million in 2024, down from RMB 383.90 million in 2023[51]. - Total revenue from other income and gains decreased from RMB 237,083,000 in 2023 to RMB 162,960,000 in 2024, representing a decline of approximately 31.2%[29]. Assets and Liabilities - Non-current assets totaled RMB 3,487.56 million as of December 31, 2024, slightly up from RMB 3,480.14 million in 2023[5]. - Current assets decreased to RMB 3,371.72 million from RMB 3,549.66 million in 2023, with inventory increasing to RMB 1,572.28 million from RMB 1,152.51 million[5]. - Total liabilities decreased to RMB 586.37 million from RMB 479.11 million in 2023, with current liabilities totaling RMB 1,773.86 million[6]. - The total equity attributable to the owners of the parent company was RMB 4,508.96 million, down from RMB 4,576.91 million in 2023[6]. Operational Insights - The company operates a single business segment focused on women's clothing retail and wholesale in the People's Republic of China[22]. - There were no single external customers contributing 10% or more to the total revenue for the years ended December 31, 2024, and 2023, indicating a diversified customer base[23]. - The company has not presented segment analysis due to the nature of its single business segment[22]. - The company did not engage in any significant acquisitions or disposals during the year ended December 31, 2024[67]. - The company faced challenges from insufficient domestic market confidence and geopolitical tensions affecting trade with the U.S.[48]. Future Outlook and Strategy - The company anticipates stable economic growth in China for 2024, with a recovery in consumer confidence and a robust retail market expected to continue in 2025[89]. - In 2025, the company will enhance its multi-brand collaborative development capabilities, aiming for significant growth through differentiated brand strategies and pricing[90]. - The company plans to establish a more efficient brand integration marketing system by 2025, focusing on product development and brand promotion synergy[91]. - The company aims to strengthen its product quality and value ratio by optimizing product structure and enhancing material quality, ensuring alignment with consumer expectations[94]. - The company will continue to implement a strategy of "opening large stores and expanding good stores" in 2025, focusing on high-end markets and flagship stores in prime locations[95]. - The company will adopt a differentiated strategy in e-commerce channels, expanding its presence on platforms like Tmall and JD while optimizing live-stream marketing on Douyin[96]. Corporate Governance - The company has complied with the corporate governance code, except for the principle regarding the separation of the roles of chairman and CEO, which are currently held by the same individual[102]. - The company is committed to maintaining high standards of corporate governance and effective governance measures[102]. - The audit committee, consisting of three independent non-executive directors, reviewed the group's financial performance for the year ending December 31, 2024[106]. Shareholder Matters - The board proposed a final dividend of HKD 0.38 per share for the year ending December 31, 2024, down from HKD 0.70 in 2023, subject to shareholder approval[100]. - The company will suspend shareholder registration from June 3 to June 6, 2025, to determine eligibility for attending the annual general meeting[101]. - The company will also suspend shareholder registration from June 13 to June 17, 2025, to determine eligibility for receiving the proposed final dividend[101].

Investment Rating - The investment rating for EEKA Fashion is "BUY" with a target price of HK$ 11.88 [6]. Core Insights - The company is expected to experience a less than 5% year-over-year decrease in revenue and a decline of less than 45% in net profit for the year ending December 2024, indicating stronger headwinds than previously estimated [1]. - The retail environment in the second half of 2024 is projected to remain stagnant, with garment sales in China experiencing a slight decline due to a high base effect from 2023 and disappointing sales attributed to unseasonably warm weather [2]. - Despite short-term setbacks, the company is committed to its "affordable luxury" positioning and will continue to invest in marketing, which has contributed to the decline in net profit [3]. - The company has made progress in inventory management, and stock clearance is not expected to be a significant issue in FY 2025, with a focus on boosting sales as the top priority [5]. Financial Performance Summary - For the year 2024, EEKA Fashion's revenue is projected to be RMB 6,606.9 million, down from RMB 6,912.3 million in 2023, reflecting a year-over-year decline of 4.4% [14]. - The net profit for 2024 is estimated at RMB 485.2 million, a significant decrease of 41.7% compared to RMB 832.6 million in 2023 [14]. - The gross margin is expected to remain stable at around 75.9% for the upcoming years, indicating a historically high level [14]. - The company plans to maintain marketing expenses at 3% - 4% of total revenue, despite the need for slight adjustments to contain costs [3]. Market Context - The market capitalization of EEKA Fashion is approximately HK$ 6.1 billion, with a current price of HK$ 8.61, reflecting a significant drop from its 52-week high of HK$ 14.04 [6]. - The company’s performance relative to the Hang Seng Index has been poor, with a 1-year relative performance of -62.3% [6]. - The retail sales of department stores in China have declined by 2.4% year-over-year, impacting key sales channels for the company's primary brand, Koradior, which accounts for over one-third of total sales [2].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK$ 11.88 [2][5]. Core Insights - The company has issued a profit warning, expecting a decline in revenue and net profit of less than 5% and less than 45% respectively for the fiscal year ending December 31, 2024. This decline is attributed to various factors including decreased product sales and increased marketing expenses [3][4]. - The company is facing stronger headwinds in the second half of 2024, with a slight decline in China's apparel retail sales and disappointing sales performance due to unusually warm weather, which has reduced demand for high-priced winter clothing [3]. - The company continues to invest in marketing despite short-term challenges, maintaining marketing expenses at around 3% to 4% of total revenue. This investment is seen as essential for brand development and sales stimulation [4]. - The company has made progress in inventory management, and inventory clearance may not be a focus for the fiscal year 2025. However, further improvement in gross margin is limited as it has already reached historical highs [4]. Financial Summary - For the fiscal year 2024, the company anticipates total revenue of RMB 6,606.9 million, a decrease of 4.4% from the previous year, with a gross profit of RMB 5,015.3 million and a gross margin of 75.9% [13]. - The net profit for 2024 is projected to be RMB 485.2 million, reflecting a significant decline of 41.7% compared to 2023 [13]. - The company’s market capitalization is approximately HK$ 6.1 billion, with a current share price of HK$ 8.61 [5][9]. Peer Comparison - The company has a market capitalization of HK$ 6,061.9 million and a price-to-earnings ratio of 8.1, which is lower than the industry average of 11.6 [9]. - The company’s gross margin of 75.3% is significantly higher than many of its peers, indicating strong operational efficiency [9]. Future Outlook - The company aims to prioritize sales growth as its primary objective moving forward, with no new investment projects anticipated in the near term [4]. - The dividend payout ratio is expected to remain stable, reflecting the company's cautious approach amid current market conditions [4].

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 11.42 HKD based on a reasonable value of 10.57 CNY per share [27][54]. Core Insights - The women's apparel industry is expanding due to the rise of the middle class and the "she economy," driving growth in the mid-to-high-end women's clothing market [53][132]. - The competitive landscape in China's women's apparel market is fragmented, with many mid-to-high-end companies adopting multi-brand strategies. The company has demonstrated superior multi-brand management capabilities, leading to higher revenue growth compared to its peers [53][194]. Company Overview - The company is a multi-brand women's apparel group with three retail brands exceeding 1 billion CNY in revenue, achieving growth rates that outpace the industry [8][60]. - The company has a strong focus on shareholder returns, maintaining a dividend payout ratio above 50% since 2020 [8][155]. - The management team is experienced, with a concentrated and stable shareholding structure led by the founding family [8][122]. Industry Analysis - The mid-to-high-end women's apparel market in China is projected to grow significantly, with the market size expected to increase from approximately 1,436 billion CNY in 2014 to 2,533 billion CNY in 2023, reflecting a CAGR of 6.5% [130][132]. - The market is characterized by a low concentration of major players, indicating significant room for growth compared to markets in North America and Europe [135][166]. Competitive Advantages - The company excels in multi-brand operations, leveraging a platform-based structure that enhances collaboration among brands and strengthens brand identity [53][199]. - The product design and development are aligned with customer aesthetics, and the company has made significant investments in its design and R&D teams, increasing the number of designers to 562 in 2023 [204][205]. - The company maintains a strong focus on marketing, with marketing expenses reaching 37.78 billion CNY in 2023, reflecting a 16.8% year-on-year increase [217][218]. Future Outlook - The company aims to enhance its position as a globally recognized Chinese luxury brand management group, focusing on continuous improvement across brand, product, channel, and supply chain [56][250]. - Revenue forecasts for 2024-2026 predict a gradual increase, with expected revenues of 71.06 billion CNY in 2024, 79.44 billion CNY in 2025, and 87.84 billion CNY in 2026, reflecting growth rates of 2.8%, 11.8%, and 10.6% respectively [233][253].

包括仿佛可能当然技术低一点但是仿佛去年的增速整个也是非常可观的这个可能会回应和一些大家觉得k型是在整个消费领域是不是这样分层至少从我们自己的品牌上来看我们八个品牌是有这样的迹象 然后全年的现金的金额是少一点经营活动现金确实跟我们去年整个因为在年初制定了比较高的目标之后我们在货品的投放总倍上就做的比较多所以整个少的数里面其实大家主要看到到后边存货上我们增加了4个亿的成品这个其实占用了比较多的一个现金当然了整个的规模还是接近10个亿的 首先欢迎大家来参加我们赢家时尚2024年的业绩交流会我简单介绍一下因为我们今天的人还是比较齐整的参加我们会议的公司管理层金董我们董事局主席然后还有我们的执行董事贺宏明女士然后是公司的CFO朱超超女士 接下来大概我花半个多小时给大家分享一下我们2024年的一个经营业绩的情况其实这里边主要是想告诉大家可能用尽短的时间让大家了解我们2024年公司的业务的一些变化包括我们所处的一个阶段然后我会同步的跟大家更新一下我们一季度的一个情况以及我们对2025年全年的一个展望 我们大概的一个指引是一个该大概是个什么样子第二个部分就是留给大家有什么需要在这个时候向管理层提问的需要我们再澄清的解释的我们 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,306,372 thousand, a decrease of 1.03% compared to RMB 3,340,896 thousand in 2023[8] - Gross profit for the same period was RMB 2,522,618 thousand, reflecting a slight increase of 0.33% from RMB 2,514,285 thousand in 2023[8] - Net profit decreased by 36.03% to RMB 282,853 thousand, down from RMB 442,199 thousand in 2023[8] - Basic earnings per share for the six months ended June 30, 2024, was RMB 40.5, down from RMB 65.9 in 2023[8] - Net profit for the same period was RMB 282.85 million, representing a significant decline of 36.03% year-on-year[17] - Total revenue for the reporting period was RMB 3,306.37 million, a decrease of 1.03% or RMB 34.53 million compared to RMB 3,340.90 million in the first half of 2023[37] - The company's profit before tax decreased to RMB 304,389 thousand, down 39.9% from RMB 506,010 thousand in the previous year[86] - Total comprehensive income for the period was RMB 270,899,000, down 34.9% from RMB 416,278,000 year-on-year[87] Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2024, was RMB 451,831 thousand, a decline of 50.60% compared to RMB 914,610 thousand in 2023[8] - The company's liquidity ratio improved to 2.00, up from 1.78 in the previous period[9] - Cash and cash equivalents as of June 30, 2024, were RMB 357.58 million, down from RMB 440.76 million as of December 31, 2023, with net cash inflow from operating activities decreasing by 50.60% to RMB 451.83 million[58] - The company reported a net cash outflow of RMB 79,570 thousand in cash and cash equivalents, compared to an increase of RMB 30,837 thousand in the same period last year[92] Revenue Sources - The company's direct retail store revenue reached RMB 2,633.96 million, down 3.67% year-on-year due to insufficient market confidence and consumer demand[17] - E-commerce platform revenue increased by 17.82% year-on-year, totaling RMB 546.34 million, driven by improved product output efficiency and increased online sales of new products[17] - Revenue from direct retail stores was RMB 2,633.96 million, accounting for 79.67% of total revenue, down 3.67% from RMB 2,734.37 million in the first half of 2023[38] - E-commerce revenue increased by 17.82% to RMB 546.34 million from RMB 463.72 million in the first half of 2023, driven by a comprehensive upgrade strategy[40] Operational Metrics - Gross margin improved to 76.30%, an increase of 1.04 percentage points from 75.26% in 2023[8] - Net profit margin decreased to 8.55%, down by 4.69 percentage points from 13.24% in 2023[8] - The inventory turnover days increased to 278.60 days, compared to 232.65 days in the previous period[9] - The sales cost for the reporting period was RMB 783.75 million, a decrease of 5.18% or RMB 42.86 million compared to RMB 826.61 million for the six months ended June 30, 2023[48] Brand and Market Strategy - The company continues to focus on brand innovation and development, enhancing customer experience through various e-commerce platforms[5] - The group focuses on enhancing product quality and optimizing product structure to navigate economic cycles and ensure sustainable growth[22] - The group emphasizes a multi-brand strategy and has developed a diversified mid-to-high-end brand matrix[23] - Koradior's marketing strategy includes collaborations with international celebrities and various promotional activities to enhance brand influence[25] Store Operations - As of June 30, 2024, Koradior has opened 700 stores in China, emphasizing expansion and store upgrades[25] - The number of retail stores decreased from 1,964 to 1,912 during the reporting period, with 96 new stores opened and 148 closed[44] - NAERSI operated a total of 455 stores in China, reflecting a net increase in self-owned stores during the first half of the year[27] - ELSEWHERE operates 160 stores in China as of June 30, 2024, with continuous improvement in direct-operated store performance[32] Shareholder and Governance - The company has adopted a new share incentive plan in April 2024 due to the previous plan nearing its limit, aimed at retaining key contributors for ongoing development[61] - The board has decided not to declare any interim dividend for the six months ended June 30, 2023[70] - The company has maintained high standards of corporate governance and has complied with the relevant code provisions during the reporting period, except for the separation of the roles of Chairman and CEO[70] Economic Context - In the first half of the year, China's GDP grew by 5.0% year-on-year, while the retail sales of social consumer goods increased by only 3.7%[22] - The government has implemented expansive fiscal and monetary policies, including issuing RMB 1 trillion in special bonds to stimulate consumer demand[22] - The high-end women's wear market is expected to stabilize as economic policies take effect and consumer confidence improves[22]

Investment Rating - The investment rating for the company is "Buy" with a target price of HK$ 12.42, down from a previous target of HK$ 16.78 [1][2]. Core Insights - The company faced significant headwinds in the first half of 2024, achieving total revenue of RMB 3.31 billion, which remained flat compared to the same period last year. The retail sales in China continued to stagnate, and the macroeconomic uncertainty posed challenges for the group [1][2]. - The shift in consumer purchasing behavior towards more conservative spending has negatively impacted local mid-to-high-end brands, including the company. Higher-end brands like La Koradior and NEXY showed growth, while other mid-to-high-end brands experienced declines [2]. - The number of stores decreased to 1,912, with both direct-operated and franchised stores declining compared to the end of last year. The company is replacing smaller stores with larger ones, but the diminishing demand is weakening the cross-selling capabilities of these larger stores [2]. - The gross margin performance was surprisingly strong, with an overall gross margin of 76.3%, driven by improved procurement strategies from brands like NAERSI and NEXY [2]. - Promotional spending increased to 3.7% of total revenue in the first half of 2024, higher than the previous guidance of 3%, due to a sudden shift in product demand [2]. - The company is adjusting its growth expectations due to the unexpected market shift, which has affected inventory and promotional strategies. The dual-engine growth expectation has not materialized, leading to a downward revision of profit forecasts and target price [1][2]. Financial Summary - For the first half of 2024, total revenue is projected at RMB 6,912.3 million, with a year-on-year growth of -1.3%. The gross profit is expected to be RMB 5,205.0 million, with a gross margin of 75.3% [5][6]. - The net profit for 2024 is projected at RMB 832.6 million, reflecting a significant decline of 35.5% compared to the previous year [5][6]. - The company’s financial ratios indicate a gross margin of 75.3% and a net profit margin of 12.0% for 2022, with expectations for slight improvements in subsequent years [6].

Investment Rating - The investment rating for EEKA Fashion (03709.HK) is "BUY" with a target price of HK$ 12.42, down from a previous target price of HK$ 16.78 [1][2]. Core Insights - The company reported a revenue of RMB 3.3 billion for the first half of 2024, which is flat compared to the previous year. The retail sales in China remained stagnant in Q2, leading to a challenging macro environment for EEKA Fashion [1][2]. - The consumption downgrade and polarization in China have intensified, affecting mid-to-high-end local brands like EEKA Fashion. This has resulted in a mixed performance where higher-end brands like La Koradior and NEXY have seen growth, while other mid-to-high-end brands have retreated [2]. - The number of stores has decreased to 1,912, with a decline in both group-operated and wholesaler stores. The company is replacing smaller stores with larger ones, but waning demand has reduced cross-selling capabilities [2]. - The gross margin has surprisingly increased to 76.3%, driven by successful procurement policies in the wholesale and e-commerce segments [2]. - Promotional expenses increased to 3.7% of total revenue in 2024 1H, exceeding the guidance of 3%, due to a sudden market turnaround. The company plans to adjust its promotional input dynamically based on the economic conditions in China [2]. Financial Summary - Revenue projections for the upcoming years are as follows: RMB 6,912.3 million for 2024, RMB 6,825.3 million for 2025, RMB 7,324.7 million for 2026, and RMB 7,958.0 million for 2027, indicating a year-on-year growth of -1.3% in 2024, followed by 7.3% in 2025 and 8.6% in 2026 [7]. - The gross profit for the years is projected to be RMB 5,205.0 million in 2024, RMB 5,186.0 million in 2025, RMB 5,563.3 million in 2026, and RMB 6,040.9 million in 2027 [7]. - The net profit is expected to decline significantly to RMB 536.8 million in 2024, with a recovery to RMB 674.1 million in 2025 and RMB 888.2 million in 2026 [7]. - The gross margin is projected to remain stable at around 75.9% for the next few years [8].

Investment Rating - The report downgrades the investment rating from "Buy" to "Outperform" [3][8]. Core Views - The company reported a revenue of 3.31 billion RMB for the first half of 2024, a year-on-year decrease of 1.0%, and a net profit of 280 million RMB, down 36.0% year-on-year, which aligns with expectations [3]. - The decline in net profit is attributed to a weak retail environment, high direct sales channel proportion leading to negative operating leverage, increased marketing expenses, and a one-time stock incentive expense of 99.48 million RMB [3]. - Excluding the stock incentive impact, the actual net profit would be 370 million RMB, representing a 19% decline compared to the comparable period in 2023 [3]. Summary by Sections Financial Performance - Revenue for FY2024E is projected at 6.95 billion RMB, with a year-on-year growth rate of 1% [4]. - Net profit for FY2024E is estimated at 614 million RMB, reflecting a year-on-year decrease of 27% [4]. - The company’s gross margin improved to 76.3%, while the net profit margin decreased to 8.4% [5][9]. Brand Performance - The main brand Koradior saw a revenue decline of 6.2% to 1.06 billion RMB, accounting for 32% of total revenue [6]. - NAERSI experienced a 4.3% revenue increase to 730 million RMB, representing 22% of total revenue [6]. - NEXY.CO's revenue grew by 5.1% to 500 million RMB, making up 15% of total revenue [6]. Store Operations - The total number of stores decreased by 68 to 1912, with direct stores accounting for 78% of the total [3]. - Direct store revenue decreased by 3.7% to 2.63 billion RMB, while online sales grew by 18% to 550 million RMB, representing 16% of total revenue [3][7]. Market Valuation - The company is currently valued at 62.3 billion RMB, with a projected PE ratio of 10 times for FY2024, indicating an 11% upside potential compared to the current market value [3][8].