SAINT ANGELO(SZ:002154) Orient Securities·2024-08-20 00:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.06 CNY based on a 2024 PE valuation of 11 times [2][4][8]. Core Views - The company achieved a revenue of 2.48 billion CNY in the first half of 2024, a year-on-year increase of 0.4%, but net profit fell by 15.6% to 340 million CNY, with Q2 showing a revenue and net profit decline of 4.5% and 38.3% respectively, which was below market expectations [1][6]. - The main brand faced growth pressure, while the Haggis brand showed stable growth and the Le Fei Ye brand experienced rapid growth. The main brand's revenue decreased by 3.7% in H1 2024, while Haggis's revenue increased by 0.2% and Le Fei Ye's revenue surged by 32.2% [1][6]. - The optional consumption demand was weak in the first half of the year, compounded by weather and high base effects, putting overall apparel retail under pressure. However, the company actively responded to external challenges by controlling discounts, optimizing channels, and enhancing brand promotion [1][6]. Financial Summary - The company’s revenue for 2022 was 4.31 billion CNY, with a projected revenue of 5.54 billion CNY for 2024, reflecting a growth rate of 5.4% [3][9]. - The gross profit margin increased by 1.5 percentage points to 67% in H1 2024, attributed to strict control over terminal discounts [1][3]. - The net profit margin for H1 2024 was 13.9%, a decrease of 2.6 percentage points year-on-year [1][3]. Earnings Forecast - The adjusted earnings per share (EPS) forecast for 2024-2026 is 0.46 CNY, 0.54 CNY, and 0.61 CNY respectively, down from previous estimates of 0.56 CNY, 0.66 CNY, and 0.77 CNY [2][8].