Semir(SZ:002563) Guoxin Securities·2024-11-06 10:27Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][10]. Core Views - The company reported a 3.2% year-on-year increase in revenue for Q3 2024, reaching 3.44 billion yuan, outperforming peers. However, net profit decreased by 36.0% year-on-year to 200 million yuan, with a net profit margin of 5.9%, down 3.6 percentage points year-on-year [1][8]. - The company is focusing on brand building and product quality improvement, which is expected to benefit its long-term performance despite short-term pressures from increased costs and expenses [1][8]. - The company has increased its inventory by 14.1% year-on-year to 4.17 billion yuan, with improved inventory turnover efficiency, reducing turnover days by 24 days to 180 days [1][8]. Financial Forecasts - Revenue projections for 2024-2026 are adjusted to 1.10 billion, 1.25 billion, and 1.39 billion yuan respectively, reflecting a slight decrease in 2024 but growth in subsequent years [1][9]. - The reasonable valuation range for the company has been raised to 6.5-7.0 yuan, corresponding to a 14-15x PE for 2025 [1][9][10]. - The company maintains a strong market position in the casual and children's apparel sectors, achieving industry-leading growth despite a weak macro consumption environment [1][8].