SAINT ANGELO(SZ:002154) Changjiang Securities·2025-05-26 15:37Investment Rating - The report maintains a "Buy" rating for the company [6][2]. Core Views - The company's Q1 2025 performance was impacted by a slower-than-expected consumer recovery and high expense ratios, but it is now considered to have investment value. Projected net profits for 2025-2027 are estimated at 480 million, 530 million, and 610 million yuan, with corresponding PE ratios of 11, 10, and 9 times [2][4]. Summary by Sections Revenue Performance - In Q1 2025, the company reported revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 1.3 billion, 170 million, and 160 million yuan, respectively, reflecting year-on-year declines of 4%, 32%, and 30% [4]. Profitability - The gross margin remained stable with a year-on-year increase of 0.1 percentage points. However, the expense ratio increased by 5.8 percentage points year-on-year, driven by higher sales, management, and financial expenses. The net profit margin decreased by 5.4 percentage points to 13.1% [4][2]. Operational Efficiency - Inventory increased by 3.5% year-on-year but decreased by 8.2% quarter-on-quarter, totaling 1.11 billion yuan. The cash flow from operating activities saw a significant increase of 353% year-on-year, reaching 79 million yuan, mainly due to improved cash collection and reduced procurement payments [4][2]. Future Outlook - The report suggests that once the negative impacts of the consumer recovery and high expense ratios dissipate, the company will present investment opportunities. The projected net profits for 2025-2027 indicate a positive growth trajectory [2][4].