BIEM(SZ:002832) GOLDEN SUN SECURITIES·2024-07-31 00:31Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The main brand is experiencing steady growth, with new brands set to launch in the 2024 autumn/winter season. The company is expected to continue leading the industry in performance [1] - The company achieved a revenue of 1.27 billion yuan in Q1 2024, representing an 18% year-on-year increase, and a net profit of 360 million yuan, up 20% year-on-year [1] - The company is projected to maintain robust growth in Q2 2024, with revenue and performance expected to show steady year-on-year increases [1] Summary by Sections Main Brand Development - The main brand's product offerings are being upgraded, focusing on younger and higher-end designs, with a broader price range and diverse styles [1] - Marketing strategies are targeting specific customer segments, including collaborations with national teams for the Paris Olympics and partnerships with KOLs [1] Financial Performance - In Q1 2024, the company reported a gross margin of 76%, a net margin of 28.5%, and a year-on-year increase in gross margin of 0.3 percentage points [1] - The company’s cash position is strong, with cash reserves of 3.23 billion yuan, approximately 3.5 times the net profit for 2023 [1] Store Expansion and Operational Quality - The company plans to add around 100 new stores in 2024, with a focus on both high-end and lower-tier markets [1] - The company’s direct sales, franchise, and e-commerce channels reported revenues of 2.395 billion, 918 million, and 195 million yuan respectively in 2023, with direct sales showing a 35% year-on-year increase [1] Profit Forecast - The report forecasts net profits of 1.156 billion, 1.407 billion, and 1.685 billion yuan for 2024, 2025, and 2026 respectively, with a current price corresponding to a PE ratio of 10 times for 2024 [1][2]