Investment Rating - The report maintains a "Buy-B" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [1][12]. Core Insights - The company experienced a slight revenue decline of 4.68% year-on-year in 2024, with total revenue reaching 6.589 billion yuan. However, the net profit attributable to shareholders fell significantly by 44.10% to 469 million yuan, primarily due to increased sales and management expenses [2][4]. - The online sales channel showed strong growth, contributing to the overall revenue despite declines in offline direct and distribution channels. Online revenue increased by 16.57% to 1.129 billion yuan, accounting for 17.14% of total revenue [3][4]. - The company plans to enhance brand value and operational efficiency in physical stores while focusing on online platforms like Xiaohongshu to maintain competitive advantages [10]. Revenue and Profitability - In 2024, the company's gross margin improved to 75.4%, up by 1.1 percentage points year-on-year. However, the net profit margin decreased to 7.1%, down by 5.0 percentage points due to rising expense ratios [4][11]. - The company reported a significant increase in inventory, which rose by 36.4% to 1.572 billion yuan by the end of 2024, indicating potential challenges in inventory management [4][11]. Financial Projections - The report forecasts earnings per share (EPS) for 2025, 2026, and 2027 to be 0.89 yuan, 1.00 yuan, and 1.09 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 7.9, 7.0, and 6.4 [10][11]. - Revenue is expected to recover slightly in 2025, with projections of 6.962 billion yuan, representing a year-on-year growth of 5.7% [11][14]. Market Performance - The company's stock closed at 6.800 HKD, with a market capitalization of 4.788 billion HKD [8]. - The stock has seen a year-to-date high of 13.420 HKD and a low of 6.560 HKD, indicating significant volatility [8]. Brand Performance - The high-end brand La Koradior achieved over 10% revenue growth, while other brands like NEXY.CO and ELSEWHERE showed mixed results, with some brands experiencing declines [3][4]. - The company operates 1,444 direct stores and 395 distribution stores, with a net decrease in both types of stores over the year [3]. Conclusion - The report suggests that despite the current challenges in the domestic consumption environment, the company's focus on online growth and brand enhancement may provide resilience and potential for recovery in the coming years [5][10].

Core Viewpoint - The latest financial report indicates that Winner Fashion is experiencing a decline in both revenue and net profit for 2024, attributed to decreased retail channel sales and consumer perceptions of high prices [1][4][5]. Financial Performance - In 2024, Winner Fashion's revenue decreased by 4.68% to 6.589 billion yuan, while net profit fell by 44.1% to 469 million yuan [4]. - This performance contrasts sharply with previous years, where the company had consistent growth, including a revenue increase of 22.05% and a net profit increase of 119.17% in 2023 [4]. Brand Performance - Among Winner Fashion's main brands, only NEXY.CO saw a slight growth of 0.79%, while Koradior and NAERSI experienced declines of 9.68% and 1.87%, respectively [5]. - Younger brands like LaKoradior and FUUNNYFEELLN showed growth of 10.23% and 22.23%, indicating a potential shift in consumer preference towards younger, more dynamic brands [5]. Pricing and Consumer Perception - Winner Fashion's products are positioned in the light luxury segment, with prices often exceeding 1,000 yuan, leading to consumer complaints about high pricing [7][8]. - The company has been criticized for extreme discounting practices, which may undermine brand value and consumer trust [8]. Marketing and Brand Strategy - The company is facing challenges in customer acquisition, with management noting a reliance on existing customers rather than attracting new ones [9]. - To combat brand aging, Winner Fashion is exploring strategies such as increasing marketing expenditures and enhancing brand influence through advertising in airports [10][11]. Future Outlook - Winner Fashion is considering introducing a new international brand to rejuvenate its offerings, although plans have been delayed due to increased partnership conditions [11].

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company reported a revenue of 6.589 billion RMB for FY2024, a decrease of 4.7% year-on-year, and a net profit of 469 million RMB, down 43.1% year-on-year, which aligns with expectations [7] - The company aims to build a Chinese luxury brand management group and has shown strong multi-brand operational capabilities, with potential for stronger growth momentum under new positioning and management upgrades [7] - The online sales channel has shown significant growth, with a 17% increase in revenue to 1.13 billion RMB in FY2024, contributing to the overall performance despite challenges in the retail environment [7] Financial Data and Profit Forecast - Revenue and profit forecasts for the company are as follows: - FY2023: Revenue 6,912 million RMB, Net Profit 838 million RMB - FY2024: Revenue 6,589 million RMB, Net Profit 469 million RMB - FY2025E: Revenue 6,998 million RMB, Net Profit 642 million RMB - FY2026E: Revenue 7,402 million RMB, Net Profit 707 million RMB - FY2027E: Revenue 7,775 million RMB, Net Profit 772 million RMB - The company’s net profit is expected to recover to 6.4 billion RMB by FY2025, with corresponding PE ratios of 8, 7, and 6 for FY2025E, FY2026E, and FY2027E respectively [6][17] Brand Performance - The revenue performance of the company's eight brands shows a mixed trend, with three brands increasing and five decreasing: - Koradior: 2.16 billion RMB, down 9.7% - NAERSI: 1.44 billion RMB, down 2% - NEXY.CO: 1.01 billion RMB, up 1% - La Koradior: 510 million RMB, up 10% - FF: 170 million RMB, up 22% [7][14] Store Optimization and E-commerce Growth - The total number of stores decreased by 125 to 1,839, with a focus on optimizing store quality and enhancing sales performance [7] - The company has successfully expanded its e-commerce channels, with significant contributions from platforms like Vipshop and Douyin, indicating a strategic shift towards online sales [15]

Core Viewpoint - The high-end women's clothing group, Winner Fashion, is facing significant challenges with a decline in both revenue and net profit, despite increased marketing expenditures and a shift towards a multi-channel strategy [1][6][9]. Financial Performance - In 2024, Winner Fashion's revenue decreased by 4.68% to RMB 6.589 billion, while net profit fell over 43% to RMB 469 million, a drop of more than RMB 360 million [1][8]. - The gross profit margin increased by 1.13 percentage points to 76.43% [1]. - The company reported a significant reduction in the number of stores, closing 322 and opening 197, resulting in a net decrease of 125 stores [5]. Brand Performance - Winner Fashion's three main brands, Koradior, NAERSI, and NEXY.CO, which each generate over RMB 1 billion in annual revenue, saw mixed results, with only NEXY.CO achieving a slight revenue increase of 0.79% [3]. - Koradior and NAERSI experienced revenue declines of 9.68% and 1.87%, respectively, indicating a significant drop in the performance of the company's leading brands [3]. Marketing and Strategy - The company increased its marketing and promotional expenses by 32.34% to RMB 263 million, despite the overall revenue decline [6]. - Winner Fashion is focusing on channel innovation and enhancing consumer experience through a strategy that emphasizes large stores and online sales, with e-commerce revenue growing by 16.57% to RMB 1.13 billion [5]. Future Outlook - Winner Fashion plans to deepen its multi-brand, omni-channel, and platform-based strategy over the next decade, aiming to leverage AI in fashion design and supply chain management [9]. - The company is optimistic about its future despite current challenges, with plans to extend brand scenarios and explore new market segments [9].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is expected to experience significant profit elasticity in 2025 despite a substantial decline in profits in 2024 due to one-time expenses and stock incentive costs [6] - The company has a target price based on its current valuation and market conditions, with a projected PE ratio of 8/7/6X for 2025-2027 [6] Financial Summary - In 2024, the company achieved revenue/net profit/operating cash flow of 6.589 billion/0.474 billion/0.996 billion, representing a year-on-year decline of 4.68%/43.06%/36.51% [2] - The net profit decline was primarily due to negative operating leverage and increased expense ratios, including stock incentive expenses of 0.099 billion and an increase of 0.068 billion [2] - The company declared a final dividend of 0.38 HKD per share, with a payout ratio of 55.6% and a dividend yield of 4.97% [2] Brand Performance - The three main brands Koradior, NAERSI, and NEXY.CO experienced revenue growth rates of -9.68%, -1.87%, and 0.79%, respectively, accounting for 69.9% of total revenue [3] - The growth brands La Koradior, ELSEWHERE, CADIDL, and NAERSILING had mixed performance, with La Koradior showing a growth rate of 10.23% [3] - The company saw a total store count decrease of 125 stores in 2024, a decline of 6.4% year-on-year [3] Profitability Metrics - The company's gross margin for 2024 was 76.4%, an increase of 1.1 percentage points year-on-year [4] - The net profit margin for 2024 was 7.1%, a decrease of 5.0 percentage points year-on-year, primarily due to increased expense ratios and decreased other income [4] - The company’s selling, general, and administrative expenses as a percentage of revenue increased, with selling expenses at 59.0%, management expenses at 10.3%, and financial expenses at 0.8% [4] Inventory and Receivables - The company's inventory increased to 1.572 billion, a year-on-year growth of 36%, with inventory to revenue ratio at 24% [5] - Accounts receivable decreased slightly by 0.3% year-on-year to 0.715 billion, while accounts payable increased significantly by 104.4% to 0.306 billion [5] Future Projections - Revenue forecasts for 2025 and 2026 have been adjusted down to 6.980 billion and 7.941 billion, respectively, while the 2027 forecast has been increased to 8.891 billion [6] - The projected net profit for 2025 and 2026 has been revised to 0.628 billion and 0.749 billion, with an increase for 2027 to 0.869 billion [6] - The earnings per share (EPS) estimates for 2025 and 2026 have been adjusted to 0.89 and 1.06, with a new estimate for 2027 at 1.23 [6]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for its stock performance in the near future [4][6]. Core Insights - The company is experiencing a short-term profit pressure due to channel optimization, with a projected revenue of 6.589 billion and a net profit of 474 million for 2024, reflecting year-on-year declines of 5% and 43% respectively [1][4]. - The company is positioned as a leading player in the domestic mid-to-high-end women's fashion market, with expectations for sustained long-term growth driven by product efficiency improvements and store expansion [4]. - The brand performance is varied, with La Koradior showing stable growth while other brands like NAERSI and NEXY.CO remain relatively stable amidst a fluctuating consumer environment [2][3]. Financial Performance Summary - For 2024, the company's revenue and net profit are projected at 6.589 billion and 474 million respectively, with year-on-year changes of -5% and -43% [1][5]. - The gross profit margin is expected to increase by 1.1 percentage points to 76.4% in 2024, while the net profit margin is projected to decrease by 4.9 percentage points to 7.2% [1]. - The company anticipates a dividend payout ratio of approximately 53% for 2024, translating to a dividend yield of about 4.9% based on the closing price on March 26, 2025 [1]. Brand and Channel Performance - The company operates eight high-end women's fashion brands, with varying performance: Koradior's revenue is expected to decline by 10% to 2.16 billion, while NEXY.CO is projected to grow by 1% to 1.01 billion [2]. - The revenue breakdown by channel for 2024 shows direct sales at 5.17 billion, franchise sales at 290 million, and e-commerce at 1.13 billion, with respective year-on-year changes of -7%, -25%, and +17% [3]. - The company is focusing on optimizing its channel structure, which is expected to enhance store efficiency in the medium to long term [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near future [4][6]. Core Insights - The company is experiencing short-term profit pressure due to channel optimization, with a projected revenue of 6.589 billion and a net profit of 474 million for 2024, reflecting year-on-year declines of 5% and 43% respectively [1][4]. - The company is a leading player in the domestic mid-to-high-end women's fashion market, with expectations for sustained long-term growth driven by product operational efficiency and store expansion [4]. Financial Performance Summary - **2024 Financials**: Revenue is expected to be 6.589 billion, with a net profit of 474 million, showing declines of 5% and 43% year-on-year respectively [1][5]. - **2025-2027 Projections**: Forecasted net profits are 593 million, 682 million, and 776 million for 2025, 2026, and 2027 respectively, indicating a recovery trend after the 2024 dip [4][5]. - **Earnings Per Share (EPS)**: The latest diluted EPS is projected to be 0.68 for 2024, with an increase to 0.84, 0.97, and 1.10 in the following years [5][12]. Brand Performance Summary - **Brand Revenue**: The Koradior brand is expected to generate 2.16 billion in revenue for 2024, down 10% year-on-year, while NAERSI and NEXY.CO show relative stability with revenues of 1.44 billion and 1.01 billion respectively [2]. - **Product Strategy**: The company is focusing on a streamlined product strategy, reducing the total number of SKUs by 7.4% to 5,894, emphasizing core styles [2]. Channel Performance Summary - **Channel Revenue Breakdown**: In 2024, revenue from direct sales is projected at 5.17 billion, down 7% year-on-year, while e-commerce is expected to grow by 17% to 1.13 billion [3]. - **Store Count Changes**: The number of direct stores decreased by 81 to 1,444, while franchise stores decreased by 44 to 395, indicating a strategic channel optimization [3]. Dividend and Valuation Summary - **Dividend Payout**: The company plans a dividend payout ratio of approximately 53% for 2024, translating to a dividend yield of about 4.9% based on the closing price on March 26, 2025 [1][4]. - **Valuation Metrics**: The current stock price corresponds to a price-to-earnings (P/E) ratio of 8 for 2025, suggesting attractive valuation levels [4][5].

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].