Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is experiencing revenue growth driven by light business and e-commerce, with plans to accelerate store openings in the second half of the year [3] - The company has a total market capitalization of 45.86 billion, with a recent closing price of 3.83 HKD [1] Summary by Sections Event Overview - In 2024, the company's revenue, net profit, and operating cash flow were 3.65 billion, 461.2 million, and 527 million respectively, showing a year-on-year growth of 3.0%, a decline of 13.1%, and a decline of 52.1% [2] - The decline in net profit is attributed to a decrease in gross margin and an increase in expense ratio [2] - The company declared a total dividend of 0.30 HKD per share, resulting in an annual dividend yield of 6.96% [2] Analysis and Judgments - The company plans to open 78 new stores throughout the year, with a focus on shopping malls and outlet stores [3] - Retail sales for the main brand and light business series were 2.756 billion and 894 million respectively, with year-on-year changes of -3.0% and 27.2% [3] - Online new retail sales grew by 24%, while the total number of stores increased by 2.9% to 2,773 [3] - The company’s gross margin for 2024 was 47.7%, a decrease of 0.5 percentage points year-on-year [4] Profit Forecast and Valuation - The company’s projected revenues for 2025 and 2026 are 4.10 billion and 4.60 billion respectively, with year-on-year growth rates of 12.26% and 12.33% [9] - The projected net profit for 2025 and 2026 is 504.98 million and 553.32 million respectively, with a year-on-year growth of 9.51% and 9.57% [9] - The earnings per share (EPS) for 2025 and 2026 are forecasted to be 0.42 and 0.46 respectively [9]
中国利郎（01234）：轻商务和电商驱动收入增长，下半年开店加速