SAINT ANGELO(SZ:002154) KAIYUAN SECURITIES·2024-04-27 14:00Investment Rating - The investment rating for the company is "Buy" (maintained) [17][31]. Core Views - The company has shown significant growth potential with multi-brand expansion and has achieved profitability turnaround [2][19]. - The main brands are expected to see revenue growth, with specific projections for each brand, indicating a positive trend in sales [4][25]. - The financial forecasts for 2024-2026 show an increase in net profit and earnings per share (EPS), reflecting a strong outlook for the company's performance [5][19]. Financial Summary - Revenue is projected to grow from 5,254 million in 2023 to 5,948 million in 2024, representing a year-over-year increase of 13.2% [5]. - The net profit attributable to shareholders is expected to rise from 698 million in 2023 to 796 million in 2024, with a growth rate of 14.0% [5]. - The gross margin is forecasted to improve slightly from 64.7% in 2023 to 65.0% in 2024, indicating better cost management [5]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 11.6 in 2023 to 10.2 in 2024, suggesting a potentially undervalued stock [5][19]. Brand Performance - The main brand "Baoxini" is expected to see a revenue increase of 0-5%, while "Baoniao" is projected to grow by 15-20% [4]. - "Hajisi" is anticipated to perform better in franchise sales compared to direct sales, with a similar decline in e-commerce [4]. - "Lefeiye" is expected to maintain a high growth rate of 20-30% in early 2024, indicating strong market demand [4][25]. Operational Efficiency - The company reported a stable non-recurring net profit margin of 17.4% in Q1 2024, with a slight increase in expense ratios [20][26]. - Inventory turnover days increased to 241 days, reflecting a need for improved inventory management [26]. - The operating cash flow for Q1 2024 was reported at 0.18 billion, a significant decrease of 88%, primarily due to increased procurement costs and other operational expenses [26].