2024-07-04 01:31Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.9, based on a 17x PE for FY2024 [1][3][5]. Core Insights - The company reported a revenue increase of 38.4% year-on-year to RMB 23.214 billion and a net profit increase of 43.7% to RMB 3.074 billion for FY2024, exceeding market expectations [2][3]. - The growth was driven by category innovation, particularly in the brand's down jacket business, which saw a revenue increase of 43.8% to RMB 19.52 billion [2]. - The company is focusing on both online and offline development to enhance operational efficiency, including the expansion into emerging platforms like Douyin [2]. Financial Performance Summary - For FY2024, the company achieved a revenue of RMB 23.214 billion, with a growth rate of 38.4% [4]. - The net profit for FY2024 was RMB 3.074 billion, reflecting a growth rate of 43.7% [4]. - The EPS for FY2024 is projected at RMB 0.28, with forecasts of RMB 0.32, RMB 0.37, and RMB 0.42 for FY2025, FY2026, and FY2027 respectively [4][11]. Business Segment Performance - The main brand, Bosideng, generated revenue of RMB 16.78 billion, growing by 42.7%, while the OEM business revenue increased by 16.4% to RMB 2.67 billion [2]. - The women's wear segment showed a recovery with a revenue increase of 16.6% to RMB 820 million [2]. - The company’s diversified business, primarily through the Saimite school uniform brand, reported a slight growth of 0.3% to RMB 203 million [2]. Operational Strategy - The company is enhancing store efficiency by concentrating resources in key markets and improving single-store performance [2]. - Online sales strategies include innovative marketing content and technological upgrades to explore new sales models [2].