DAZZLE FASHION(SH:603587) Shenwan Hongyuan Securities·2025-11-04 11:57Investment Rating - The report maintains an "Outperform" rating for the company [2][7]. Core Insights - The company reported a recovery in profit growth in Q3 2025, with a slight decline in revenue and a notable increase in net profit for the quarter [7]. - Online sales showed strong growth, while offline channels are still undergoing adjustments [7]. - The company has a strong brand presence in the mid-to-high-end women's clothing sector, with improved gross margins and cash flow [7]. Financial Data and Profit Forecast - Total revenue for the first three quarters of 2025 decreased by 4.2% year-on-year to 1.545 billion yuan, while net profit attributable to the parent company fell by 15.4% to 236 million yuan [6][7]. - Q3 2025 revenue decreased by 1.1% year-on-year to 480 million yuan, but net profit increased by 16.6% to 70 million yuan [7]. - The gross margin for Q3 2025 improved to 75.5%, with a net profit margin of 15.3% [7][10]. - The company expects net profits for 2025-2027 to be 302 million, 322 million, and 354 million yuan respectively, with corresponding PE ratios of 20, 19, and 17 times [7][6].