SAINT ANGELO(002154) HUAXI Securities·2024-09-28 13:03Investment Rating - The investment rating for the company is "Buy" with a target price set at 2.80 CNY per share, which is expected to boost market confidence [1]. Core Insights - The report highlights that the major shareholder's full subscription of the private placement at a low point is significant, mirroring a similar event in May 2021, which is likely to enhance market confidence [2]. - The company's stock price decline is attributed to several factors, including the performance of the HAZZYS brand, which has not shown significant growth due to low consumer confidence and weather impacts on foot traffic [2]. - Future growth potential remains, particularly for the HAZZYS brand, which is expected to recover and achieve double-digit growth after the current year's challenges are addressed [3]. Summary by Sections Event Overview - The company plans to issue up to 285,714,285 shares to specific investors, with the controlling shareholder, Mr. Wu Zhize, subscribing to all shares for a total of up to 800 million CNY, aimed at replenishing working capital and repaying bank loans [1]. Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are set at 5.5 billion CNY, 6.4 billion CNY, and 7.4 billion CNY respectively, with corresponding net profits of 677 million CNY, 797 million CNY, and 955 million CNY [5][8]. - The report anticipates a gross margin improvement from 64.7% in 2023 to 66.1% by 2026, indicating a positive trend in profitability [6][8]. Earnings Per Share (EPS) and Valuation - The projected EPS for 2024, 2025, and 2026 are 0.46 CNY, 0.55 CNY, and 0.65 CNY respectively, with the current closing price of 3.98 CNY corresponding to a PE ratio of 9, 7, and 6 for the respective years [3][6].