BIEM(SZ:002832) Orient Securities·2025-11-03 09:36Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 18 CNY based on a 15x PE valuation for 2025 [3][5]. Core Insights - The company is experiencing short-term operational pressure but is expected to benefit from industry recovery and the growth of new brands. The revenue growth is primarily driven by e-commerce, while franchise channels face challenges [2][10]. - The company has made significant investments in brand rejuvenation and new brand development, which have led to increased sales expenses, impacting profitability [10][11]. - The company has acquired two international brands, CERRUTI 1881 and KENT&CURWEN, which are currently in the investment phase, contributing to short-term losses but expected to enhance growth in the long term [10][11]. Financial Performance Summary - Revenue is projected to grow from 3,536 million CNY in 2023 to 5,256 million CNY in 2027, with a CAGR of approximately 11.9% [4]. - Net profit attributable to the parent company is expected to decline from 911 million CNY in 2023 to 683 million CNY in 2025, before recovering to 919 million CNY in 2027 [4]. - The company's gross margin is forecasted to decrease from 78.6% in 2023 to 75.8% in 2025, with a slight recovery to 76.3% by 2027 [4]. Earnings Forecast - The adjusted earnings per share (EPS) estimates for 2025, 2026, and 2027 are 1.20 CNY, 1.38 CNY, and 1.61 CNY respectively, reflecting a downward revision from previous estimates [3][11]. - The company’s sales expenses are expected to increase significantly, impacting overall profitability despite revenue growth [10][11]. Market Performance - The company's stock price as of October 31, 2025, was 15.98 CNY, with a 52-week high of 22.19 CNY and a low of 14.93 CNY [5].