SAINT ANGELO(SZ:002154) Guotai Junan Securities·2024-04-28 06:02Investment Rating - The report assigns a rating of "Accumulate" to the company, with a target price of CNY 7.98, maintaining the same rating as the previous report [15]. Core Views - The company experienced a decline in net profit in Q1 2024, primarily due to delays in government subsidies, but it is expected to achieve stable growth throughout the year as it expands its multi-brand strategy [15]. - The company's gross profit margin reached a recent high of 67.8%, indicating strong performance in winter product sales [15]. - Despite a slowdown in revenue growth in Q1 2024, the company is anticipated to accelerate store openings in the second half of the year, contributing to overall growth [15]. Financial Summary - Revenue for 2023 is projected at CNY 5,254 million, with a growth rate of 22% compared to 2022 [15]. - The company's EBIT is expected to increase to CNY 1,002 million in 2024, reflecting a 12% growth [15]. - Net profit attributable to shareholders is forecasted to reach CNY 698 million in 2024, a 14% increase from 2023 [15]. - The report highlights a significant improvement in profitability metrics, with a net profit margin of 13.3% expected in 2024 [15]. Operational Metrics - The company maintains a healthy inventory level, with a balance of CNY 1,070 million as of Q1 2024, down 7% from the beginning of the year [15]. - The report notes an increase in operational efficiency, with inventory turnover days improving from 267.8 days to 226.6 days [15]. - The company’s return on equity (ROE) is projected to rise to 16.9% in 2024, indicating enhanced profitability [15].