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].

Investment Rating - The report maintains a "Buy-B" rating for the company, indicating an expected price increase exceeding the benchmark index [2][5][10]. Core Insights - The company reported a slight decline in revenue for the first half of 2024, with total revenue of 3.306 billion yuan, down 1.03% year-on-year, and a significant drop in net profit of 36.03% to 283 million yuan [2][3]. - The decline in revenue was primarily driven by a decrease in offline sales channels, while online sales channels showed growth, particularly on platforms like Tmall and Douyin [3][4]. - The company's gross margin improved to 76.3%, up 1.04 percentage points year-on-year, despite rising sales and management expense ratios [3][4]. Company Performance Overview - As of the end of H1 2024, the company had 1,912 stores, a net decrease of 52 stores from the beginning of the year, with direct stores generating 2.634 billion yuan in revenue, down 3.7% year-on-year [3][4]. - Online sales reached 546 million yuan, a 17.8% increase year-on-year, accounting for 16.5% of total revenue [3][4]. - The company’s brands, including Koradior and NAERSI, showed varied performance, with Koradior's revenue declining by 6.19% while NAERSI grew by 4.3% [3][4]. Financial Projections - The company expects stable retail sales in 2024, with projected earnings per share (EPS) of 1.20, 1.33, and 1.45 yuan for 2024-2026, respectively [5][6]. - The report forecasts a price-to-earnings (P/E) ratio of 6.7, 6.1, and 5.6 for the same period, indicating a potentially undervalued stock [5][6]. - The company’s operating cash flow for H1 2024 was 452 million yuan, a decrease of 50.6% year-on-year, with cash and cash equivalents at 358 million yuan [4][8].

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company, Winner Fashion (03709.HK), is expected to have stable revenue growth for the full year, with a projected revenue of approximately CNY 33.1 billion for H1 2024, reflecting a year-on-year decrease of 1% and a net profit of CNY 2.8 billion, down 37% year-on-year [1]. - The company is a leading player in the domestic mid-to-high-end women's fashion market, with ongoing product efficiency improvements and store expansion expected to drive long-term performance growth [1][3]. - The report anticipates that the company's revenue for 2024 will remain flat year-on-year, with net profits projected at CNY 6.72 billion, CNY 8.07 billion, and CNY 9.21 billion for 2024, 2025, and 2026 respectively [1][2]. Financial Performance - For H1 2024, the company reported a gross margin of 76.3%, an increase of 1.0 percentage points year-on-year, while the net profit margin decreased by 4.7 percentage points to 8.6% [1]. - The revenue breakdown by brand shows varied performance, with Koradior generating CNY 10.57 billion (up 6% year-on-year), NAERSI at CNY 7.35 billion (up 4%), and NEXY.CO at CNY 5.04 billion (up 5%) [1]. - The company's revenue from direct sales, franchises, and e-commerce for H1 2024 was CNY 26.3 billion, CNY 1.3 billion, and CNY 5.5 billion respectively, with e-commerce showing a significant growth of 17.8% year-on-year [1]. Market Position and Strategy - The company is focusing on channel upgrades and store quality optimization, with a reduction in the number of stores to enhance overall efficiency [1]. - The report highlights the company's strategy of increasing investment in core product lines and improving inventory turnover, with inventory levels rising by 40% year-on-year to CNY 12.7 billion as of H1 2024 [1]. - The company is expected to benefit from a more efficient product system and improved inventory management in the future [1].

Summary of the Conference Call Company Overview - The conference call pertains to Winner Fashion Holdings, listed under the stock code 3709, discussing its HK2024 interim performance results [1] Key Points and Arguments - The call began with an introduction of the board members and management team present at the meeting, including the Chairman and Executive Director, Mr. Junming [1] Other Important Content - No additional financial data, industry insights, or specific performance metrics were provided in the excerpt [1]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,306.37 million, a slight decrease of 1.03% or RMB 34.53 million compared to RMB 3,340.90 million for the same period in 2023[2] - Net profit for the six months ended June 30, 2024, was RMB 282.85 million, a decrease of 36.03% or RMB 159.35 million compared to RMB 442.20 million for the same period in 2023[2] - Operating cash inflow for the six months ended June 30, 2024, was RMB 451.83 million, down from RMB 914.61 million for the same period in 2023[2] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.41, compared to RMB 0.66 for the same period in 2023[2] - Total comprehensive income for the six months ended June 30, 2024, was RMB 270.90 million, down from RMB 416.28 million for the same period in 2023[6] - The company reported a pre-tax profit of RMB 278,662,000 for the six months ended June 30, 2024, compared to RMB 445,227,000 for the same period in 2023[21] - The income tax expense for the six months ended June 30, 2024, was RMB 21,536,000, significantly lower than RMB 63,811,000 in the previous year[19] - Net profit for the reporting period was RMB 282.85 million, a decrease of 36.03% or RMB 159.35 million compared to RMB 442.20 million in the first half of 2023, with a net profit margin dropping from 13.24% to 8.55%[68] Revenue Breakdown - Direct retail store sales amounted to RMB 2,633,960,000, down 3.7% from RMB 2,734,368,000 year-on-year[15] - E-commerce platform sales increased by 17.7% to RMB 546,343,000 from RMB 463,715,000 in the previous year[15] - Revenue from direct retail stores was RMB 2,633.96 million, accounting for 79.67% of total revenue, which represents a decrease of 3.67% from RMB 2,734.37 million in the same period last year[51] - E-commerce revenue increased by 17.82% to RMB 546.34 million, up from RMB 463.72 million in the first half of 2023, representing 16.52% of total revenue[51] - Revenue from Tmall e-commerce platform rose by 7.91% to RMB 124.41 million, while Vipshop's revenue increased by 14.80% to RMB 239.69 million[53] - EEKA Fashion Mall's revenue surged by 35.45% to RMB 49.71 million, and Douyin's revenue grew by 4.01% to RMB 101.39 million[53] Asset and Equity Position - Non-current assets as of June 30, 2024, totaled RMB 3,424.96 million, compared to RMB 3,480.14 million as of December 31, 2023[7] - Current assets as of June 30, 2024, were RMB 3,156.18 million, down from RMB 3,549.66 million as of December 31, 2023[7] - Total equity attributable to equity holders of the parent as of June 30, 2024, was RMB 4,430.08 million, compared to RMB 4,576.91 million as of December 31, 2023[9] Operational Highlights - The company operates a single business segment in China, focusing on women's retail and wholesale, with no separate segment analysis presented[14] - The number of direct retail stores as of June 30, 2024, was 1,485, with NAERSILING operating 88 stores[52] - CADIDL operated 153 stores as of June 30, 2024, contributing to the overall retail strategy focused on enhancing store quality and consumer experience[48] - The total number of retail stores decreased from 1,964 to 1,912, with 96 new stores opened and 148 closed during the reporting period[56] Marketing and Brand Strategy - Koradior and NAERSI, the company's two main brands, generated sales revenue exceeding RMB 3.85 billion, ranking among the top ten brands in the industry[37] - NAERSI's promotional activities achieved nearly 100 million exposures through various media collaborations and events[40] - The company plans to continue enhancing product quality and brand image to navigate the competitive high-end women's apparel market during economic downturns[36] - Koradior's marketing strategy includes collaborations with international celebrities to strengthen brand recognition and influence[38] - NAERSI's "High-Energy Wardrobe" initiative focuses on product value analysis and highlights signature craftsmanship to attract urban female consumers[40] - ELSEWHERE is integrating its marketing and brand image to enhance its presence in the sustainable fashion sector, appealing to environmentally conscious consumers[45] Cost and Expense Management - Research and development costs increased to RMB 103,430,000, up 22% from RMB 84,856,000 in the previous year[18] - The company incurred a total employee benefit expense of RMB 805,946,000, an increase from RMB 703,779,000 in the same period last year[18] - Operating expenses for the reporting period amounted to RMB 2,272.42 million, an increase of 9.15% or RMB 190.49 million compared to RMB 2,081.93 million for the six months ended June 30, 2023[64] - Sales and distribution expenses were RMB 1,902.95 million, up 6.19% from RMB 1,792.03 million for the same period last year, primarily due to increases in salaries, employee benefits, store expenses, and promotional investments[65] - Administrative and other operating expenses rose by 27.45% to RMB 369.47 million from RMB 289.90 million in the same period last year, mainly due to increased salaries and R&D costs for product design improvements[66] Future Outlook and Strategy - The company plans to focus on steady development of existing brand businesses and aims to achieve annual operational goals while enhancing quality across all business areas[75] - The company will continue to invest in brand building and improve marketing efficiency through systematic promotion and quantifiable target assessments[75] - The product system will be enhanced by improving product quality and focusing on core product categories, with an emphasis on upgrading materials and refining craftsmanship[75] - The company aims to optimize offline store operations and expand online channel layouts, particularly in high-end markets and through partnerships with quality regional distributors[75] - The supply chain will be further integrated and improved, focusing on quality and enhancing overall bargaining power through consolidated procurement of raw materials[75] Dividend and Shareholder Information - The board of directors did not recommend the declaration of an interim dividend for the six months ended June 30, 2024[2] - The board has decided not to declare any interim dividend for the six months ended June 30, 2023[76] - Approximately 3,100,000 shares were purchased from the market under the share incentive plan, with total costs around HKD 32,000,000[78] Compliance and Governance - The company plans to adopt new and revised International Financial Reporting Standards effective from January 1, 2024, which are not expected to have a significant impact on the financial statements[12] - The audit committee, composed of three independent non-executive directors, is responsible for reviewing financial reporting and risk management[79]