SAINT ANGELO(002154) Minsheng Securities·2024-10-20 14:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Views - The company is positioned as a leading multi-brand apparel group in the mid-to-high-end market, with its main brand showing resilient growth and HAZZYS emerging as a new growth driver [3][6]. - The company has a strong focus on its core apparel business, which has seen a compound annual growth rate (CAGR) of 12.94% from 2017 to 2023, with 2023 apparel revenue reaching 5.109 billion yuan, accounting for 97.2% of total revenue [3][32]. - HAZZYS, a mid-to-high-end British style apparel brand, has achieved a remarkable CAGR of 83% from 2011 to 2023, indicating significant growth potential [3][38]. Summary by Sections Company Overview - Founded in 1996, the company has expanded its brand matrix to include nine brands, catering to diverse dressing needs for various occasions [3][24]. - The company has established a robust offline sales network with over 1,700 outlets and three major production bases [24]. Brand Analysis - HAZZYS targets the mid-to-high-end market with a focus on British casual styles, appealing to fashion-conscious consumers aged 25-40 [38]. - The main brand, Baoxini, is recognized as the leading domestic suit brand, undergoing a transformation towards younger and more casual styles [3][38]. - Other brands like Baoniao and Lafuma are also showing promising growth, with Lafuma achieving a 40.5% year-on-year revenue increase in 2023 [3][38]. Financial Forecast - The company is projected to achieve net profits of 681 million yuan, 756 million yuan, and 849 million yuan for 2024, 2025, and 2026 respectively, with corresponding growth rates of -2.4%, 10.9%, and 12.4% [4]. - The report estimates a revenue of 5.254 billion yuan for 2024, reflecting a growth rate of 21.8% [4]. Investment Recommendation - The company is expected to leverage its young-oriented strategy and differentiated product offerings to secure growth in the apparel market, particularly through the expansion of HAZZYS [3][4].