SAINT ANGELO(002154) HUAXI Securities·2025-04-19 13:20Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company experienced a decline in revenue and net profit in 2024, with revenue at 5.153 billion and net profit at 495 million, representing a year-on-year decrease of 1.91% and 29.07% respectively [2] - The decline in performance was attributed to negative operating leverage, rigid expenses, and a reduction in investment income [2] - The company plans to distribute cash dividends of 0.5 yuan per 10 shares and 0.7 yuan mid-term, with a payout ratio of 35% [3] - The company is investing 300-400 million yuan in a new R&D center and acquiring the global intellectual property rights for the Woolrich brand for 380 million yuan [3] Financial Summary - The company's revenue for 2024 was 5.153 billion, with a projected increase to 5.602 billion in 2025 and 6.205 billion in 2026 [11] - The net profit for 2024 is expected to be 495 million, with projections of 534 million in 2025 and 700 million in 2026 [11] - The gross margin for 2024 is reported at 65.0%, with a slight increase expected in subsequent years [11] - The company’s earnings per share (EPS) is projected to be 0.34 yuan in 2024, increasing to 0.37 yuan in 2025 and 0.48 yuan in 2026 [11] Brand Performance - The company’s main brands, including Baoniao and Hazzys, showed mixed results, with Baoniao experiencing a decline due to reduced group purchasing budgets [4] - The number of stores for Baoniao increased by 4 to 821, while Hazzys opened 21 new stores, bringing the total to 478 [4] - Online and direct sales channels showed slight growth, with online revenue at 8.17 billion, reflecting a year-on-year increase of 0.42% [4] Profitability Analysis - The company’s gross margin increased slightly to 65.0%, while the net profit margin decreased to 9.6% due to rising sales expenses and asset impairment losses [5][6] - The sales expense increased by 100 million, primarily due to higher advertising costs [6] - The company’s net profit for Q4 2024 was reported at 80 million, with a net profit margin of 4.9% [6] Inventory and Receivables - The company’s inventory at the end of 2024 was 1.205 billion, reflecting a year-on-year increase of 4.66% [7] - Accounts receivable also increased to 693 million, with a turnover period of 47 days [7] Investment Outlook - Short-term outlook remains cautious due to high base effects and low confidence among franchisees, but there is cautious optimism for the year ahead [8] - The company expects to see improvements in its main brand and other segments in the coming years, with projected revenue growth of 8.7% in 2025 and 10.8% in 2026 [9]