SAINT ANGELO(002154) 国信证券·2024-08-19 13:00Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][14]. Core Views - The company has shown steady revenue growth of 0.4% year-on-year in the first half of 2024, reaching 2.48 billion yuan, despite a challenging retail environment [2][4]. - Gross margin improved by 1.5 percentage points to 67.0% due to strict discount control, although net profit decreased by 15.6% to 340 million yuan [2][4]. - The company plans to distribute a cash dividend of 0.7 yuan per 10 shares, totaling approximately 102 million yuan, with a payout ratio of about 30% [2][4]. Revenue and Profitability - The second quarter saw a revenue decline of 4.5% year-on-year, with a gross margin increase of 1.1 percentage points to 66.0% [2][3]. - The company experienced a rise in sales expense ratio by 5.0 percentage points, leading to a net profit margin drop of 4.6 percentage points to 8.3% [2][3]. Brand Performance - Revenue from the brand "Baoxini" decreased by 3.7%, while "Hajisi" saw a slight increase of 0.2% in revenue [3]. - The "Lefeiye" brand benefited from a high-growth outdoor segment, achieving a revenue increase of 32.2% [3]. Financial Forecasts - The forecast for net profit from 2024 to 2026 is adjusted to 660 million, 750 million, and 830 million yuan respectively, reflecting a decrease from previous estimates [4][11]. - Revenue projections for the same period are revised to 5.367 billion, 5.929 billion, and 6.521 billion yuan, with expected growth rates of 2.2%, 10.5%, and 10.0% [4][11]. Valuation - The target price has been adjusted to a range of 5.4 to 5.8 yuan, corresponding to a price-to-earnings ratio of 12-13x for 2024 [4][14]. - The company’s financial metrics indicate a price-to-earnings ratio of 8.7 for 2024, with a projected earnings per share of 0.45 yuan [15][16].