BIEM(SZ:002832) Changjiang Securities·2025-05-20 04:43Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - In 2024, the company achieved a revenue of 4.0 billion yuan, representing a year-on-year increase of 13.2%, while the net profit attributable to the parent company was 780 million yuan, down 14.3% year-on-year. In Q4, the revenue was 1.0 billion yuan, up 35.7% year-on-year, but the net profit was only 20 million yuan, down 87.9% year-on-year. For Q1 2025, the revenue was 1.29 billion yuan, a slight increase of 1.4% year-on-year, with a net profit of 330 million yuan, down 8.5% year-on-year [2][6]. Summary by Sections Revenue and Profit Analysis - The company experienced steady revenue growth in 2024, with direct sales, franchise, and e-commerce revenues increasing by 7%, 24%, and 35% respectively, reaching 2.57 billion, 1.14 billion, and 260 million yuan. The growth in direct sales was primarily driven by the net opening of 37 stores, while franchise single-store revenue increased by 21% with a net opening of 2 stores. E-commerce revenue saw a significant increase of 35%, with its gross margin rising by 4.0 percentage points to 74.6% due to accelerated online layout optimization. However, the gross margins for direct sales and franchise operations decreased, leading to an overall gross margin decline of 1.6 percentage points to 77.0% [11]. Q1 2025 Performance - In Q1 2025, the company faced short-term pressure on performance due to increased expenditure. Revenue slightly increased by 1.4% to 1.29 billion yuan, but the gross margin decreased by 0.6 percentage points, and the sales expense ratio increased by 1.8 percentage points, resulting in a year-on-year decline of 8.5% in net profit attributable to the parent company. The company is expected to accelerate its store opening pace in 2025, with increased expenditure on both the main brand and new brands, which may continue to pressure short-term performance [11]. Future Outlook - Looking ahead, while short-term expenditure is expected to continue to pressure profits, the company is positioned in the high-end sports fashion sector, and as the retail environment stabilizes, growth from its multi-brand matrix is anticipated. The company is projected to achieve net profits attributable to the parent company of 700 million, 780 million, and 860 million yuan for 2025-2027, representing year-on-year changes of -10%, +11%, and +11% respectively. The current price corresponds to PE ratios of 13, 12, and 11 times for the respective years [11].