智通财经网·2025-08-01 02:29Core Viewpoint - The investment bank maintains an "outperform" rating for Prada (01913) but has lowered the target price by 6.3% to HKD 75 due to ongoing weakness in the luxury goods sector and uncertainties surrounding the integration of Versace [1] Group 1: Financial Performance - Prada Group reported a 9% year-on-year increase in net revenue for 1H25, reaching EUR 2.74 billion, in line with FactSet consensus expectations [2] - Gross margin improved to 80.1% in 1H25 from 79.8% in 1H24, driven by higher operational efficiency and lower logistics costs [2] - EBIT grew by 6% year-on-year to EUR 607 million, with an EBIT margin of 22.2%, slightly below FactSet consensus of EUR 631 million due to non-recurring expenses related to the Versace acquisition and increased marketing costs [2] - Net income stood at EUR 386 million, with a net margin of 14.1%, remaining stable year-on-year primarily due to timing adjustments in tax payments [2] - As of June 30, 2025, the group held net cash of EUR 352 million [2] Group 2: Growth Drivers and Outlook - Despite uncertainties regarding the Versace integration, the bank believes that excluding Versace, Prada Group could be one of the best-performing luxury companies in 2025, with expected revenue growth above industry average and rare EBIT margin expansion potential [1] - Key growth drivers include the expansion of retail space for the Prada and Miu Miu brands, expected to accelerate in 2H25, increased production of Miu Miu leather goods, and maintaining creative consistency while many peers undergo design transformations in 2025 [1] - The current valuation of Prada Group is considered attractive based on the 2025 earnings outlook and long-term prospects [1]