Investment Rating - The report assigns a "Buy" rating for the company, Baoshan International (3813 HK) [2][6][12] Core Insights - The company is expected to maintain stable performance in 2025, with revenue projected to be flat year-on-year. The average selling price is anticipated to grow slightly, while order volume is expected to remain stable [6][9] - The company has improved its profit margins through discount control and enhanced operational capabilities, despite a decline in revenue due to reduced foot traffic in physical stores [6][9] - The target price for the company has been adjusted down to HKD 0.90 from HKD 1.01, reflecting an 8x price-to-earnings ratio for 2025 [6][7] Financial Overview - Revenue is projected to decrease by 8.0% in 2024 to RMB 18,454 million, with a slight recovery expected in 2025 to RMB 18,831 million, representing a 2.0% year-on-year growth [5][9] - Net profit is expected to grow by 11.1% in 2025, reaching RMB 546 million, with earnings per share projected at RMB 0.11 [5][9] - The company’s gross margin is expected to improve to 34.5% in 2025, up from 34.2% in 2024, driven by effective inventory management and discount control [6][10] Stock Performance - The stock closed at HKD 0.59, with a potential upside of 53.3% to the target price of HKD 0.90 [1][7] - The stock has shown an 18.0% increase year-to-date [4] Market Position - The company is focusing on new brand development and enhancing its multi-channel strategy to adapt to market changes and capture new growth opportunities [6][9]
宝胜国际：折扣管控和运营能力提升增强利润率；2025年预期表现稳定-20250313