Investment Rating - The report maintains a "Buy" rating for the company [5][6][11] Core Views - The company's Q1 performance met expectations, with a revenue of 1.7 billion RMB, showing a low single-digit year-on-year growth. The main brand Koradior experienced a slight decline of 3%, while the second brand NAERSI grew by 5%, and the third brand NEXY.CO increased by 9%. The new brand FUUNNY FEELLN saw a significant growth of 21% [5] - The online sales channel showed strong growth, with a 18% year-on-year increase in Q1. Notably, Tmall sales grew by 29%, and Douyin and video account sales increased by 30% [5] - The company is focusing on optimizing its offline store structure, with a projected reduction of at least 10% in store numbers for the year, aiming to enhance user experience and sales conversion [5] - Inventory turnover efficiency has improved, with a notable increase in the proportion of main sales items. The company aims to enhance customer repurchase rates and purchase frequency through product strategy adjustments [5] - The company announced a stock incentive plan with ambitious sales growth targets, aiming for a retail revenue of 10.5 billion RMB in 2024 [5] - The company is positioned as a leading Chinese light luxury brand management group, with a focus on product, channel, supply chain, and digital upgrades [5] Financial Data and Profit Forecast - The company’s projected revenue for 2024 is 8.132 billion RMB, with a year-on-year growth rate of 18%. The net profit is expected to reach 1.005 billion RMB, reflecting a 20% increase [6][11] - The earnings per share (EPS) for 2024 is projected at 1.41 RMB, with a price-to-earnings (PE) ratio of 8 times [6][11] - The financial summary indicates a steady increase in revenue and net profit over the next few years, with net profits projected to reach 1.365 billion RMB by 2026 [11]
一季度表现符合预期，电商增长亮眼，运营质量提升