SAINT ANGELO(SZ:002154) Great Wall Securities·2024-08-21 10:36Investment Rating - The investment rating for the company is "Buy" with a maintained rating [4]. Core Views - The company is facing short-term pressure on net profit margins due to rising expense ratios, but it has managed to achieve positive revenue growth despite external challenges [1][4]. - The company has implemented strategies such as strict control over terminal discounts, channel expansion, and brand promotion to counteract external pressures [4]. - The growth of the company's emerging brand, Le Fei Ye, is notable, indicating the effectiveness of its multi-brand strategy [2][4]. Financial Summary - Revenue: The company reported a revenue of 5,254 million yuan in 2023, with an expected increase to 5,436 million yuan in 2024, reflecting a year-on-year growth rate of 3.5% [1]. - Net Profit: The net profit for 2023 was 698 million yuan, with a forecasted decline to 661 million yuan in 2024, representing a year-on-year decrease of 5.2% [1]. - Gross Margin: The gross margin for the first half of 2024 was 66.99%, an increase of 1.46 percentage points year-on-year [2]. - Expense Ratio: The expense ratio increased to 48.75% in the first half of 2024, up by 2.65 percentage points year-on-year, driven by higher marketing and personnel costs [2]. - Earnings Per Share (EPS): The EPS for 2024 is projected to be 0.45 yuan, with subsequent years expected to rise to 0.53 yuan in 2025 and 0.60 yuan in 2026 [4]. Brand and Channel Performance - Brand Revenue: The company’s brands reported varied revenue performance in the first half of 2024, with notable growth in the Le Fei Ye brand at 32.20% year-on-year [2]. - Channel Revenue: The company has established a comprehensive marketing network, achieving revenues of 3.81 million yuan from online sales and 10.08 million yuan from direct sales in the first half of 2024 [2]. - Store Expansion: The company has opened 1,772 offline stores across various regions, enhancing its market presence [2].