Semir(SZ:002563) Soochow Securities·2025-04-02 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is focusing on brand renewal and store expansion, which is expected to enhance its dividend payout ratio [1] - In 2024, the company reported a revenue of 14.626 billion yuan, a year-on-year increase of 7.06%, and a net profit attributable to shareholders of 1.137 billion yuan, up 1.42% year-on-year [8] - The company has initiated a net store opening cycle, increasing its direct-operated stores and enhancing its online and franchise revenue channels [8] Financial Performance Summary - Total revenue for 2023 was 13.661 billion yuan, with a projected increase to 14.626 billion yuan in 2024, and further growth expected in subsequent years [1] - The net profit attributable to shareholders is forecasted to grow from 1.122 billion yuan in 2023 to 1.137 billion yuan in 2024, with a compound annual growth rate expected in the following years [1] - The company has increased its dividend payout ratio to 82.9% in 2024, up from 72.1% in 2023, reflecting a commitment to returning value to shareholders [8] Product and Market Strategy - The company is focusing on product iteration in children's clothing and the renovation of stores, contributing to revenue growth [8] - The company has established three core product lines for its Bala brand, targeting daily life, urban outdoor, and high-light moments, with significant sales achievements in these categories [8] - The company has expanded its store presence internationally, opening over 30 new stores in markets such as Singapore, Malaysia, and Vietnam in 2024 [8] Cost and Margin Analysis - The gross margin slightly decreased to 43.82% in 2024, primarily due to increased discounts in the casual wear category [8] - The company has seen an increase in its expense ratio, with sales expenses rising due to the expansion of direct-operated stores and brand promotion efforts [8] - Inventory turnover days improved, decreasing by 19 days to 136 days, indicating better inventory management [8]