BIEM(SZ:002832) CMS·2025-05-02 09:06Investment Rating - The report maintains a strong buy rating for the company [6][10] Core Views - The company is experiencing steady revenue growth, with a projected revenue increase of 13.24% in 2024, while net profit is expected to decline by 14.28% [1][2] - Online sales are growing at a faster rate compared to offline channels, and the company is expanding its offline direct stores [3][4] - The overall gross margin is under pressure, but online gross margin has improved, while increased expenses are affecting net profit margins [4][5] Revenue and Profitability - In 2024, the company’s revenue is projected to be 40.04 billion, with a net profit of 7.81 billion [2][11] - For Q1 2025, revenue is expected to be 12.86 billion, with a net profit of 3.31 billion [2][11] - The company anticipates net profits of 7.98 billion, 8.96 billion, and 10.11 billion for 2025, 2026, and 2027 respectively [1][10] Channel Performance - In 2024, online revenue reached 2.63 billion, growing by 35.03%, while offline direct store revenue was 25.68 billion, growing by 7.22% [3] - The total number of stores increased to 1,294 by the end of 2024, with a net addition of 39 stores [3] Margin Analysis - The gross margin for 2024 is expected to be 77.01%, a decrease of 1.60 percentage points year-on-year [4][14] - The net profit margin for 2024 is projected to decline to 19.49%, down by 6.26 percentage points [4][14] Cash Flow and Inventory Management - The net operating cash flow for 2024 is projected to be 7.50 billion, a decrease of 42.10% [10][11] - Inventory turnover days improved to 324 days in 2024, down by 22 days year-on-year [10] Financial Forecasts - Revenue forecasts for 2025, 2026, and 2027 are 42.94 billion, 47.19 billion, and 51.69 billion respectively, with growth rates of 7%, 10%, and 10% [10][11] - The company’s net profit is expected to grow at rates of 2%, 12%, and 13% for the same years [10][11]