DAZZLE FASHION(SH:603587) EBSCN·2024-04-28 06:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.55 CNY [1]. Core Views - The company reported a revenue of 2.649 billion CNY in 2023, representing a year-on-year growth of 10.35%, and a net profit of 494 million CNY, which is a 28.31% increase year-on-year [1]. - The first quarter of 2024 saw a decline in revenue and net profit, with a year-on-year decrease of 11.98% and 33.03% respectively [1]. - The company has adjusted its profit forecasts for 2024 and 2025 downwards by 26% and 29% respectively, while introducing a new profit forecast for 2026 [4]. Financial Performance Summary - In 2023, the company achieved a gross profit margin of 74.46%, a decrease of 0.90 percentage points from the previous year [6]. - The operating cash flow for 2023 was 703 million CNY, an increase of 41.62% year-on-year [3]. - The company plans to enhance product and brand strength in 2024, integrating online and offline resources to drive growth and improve operational efficiency [13]. Revenue and Profit Forecasts - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.09 CNY, 1.19 CNY, and 1.31 CNY respectively, with corresponding price-to-earnings (P/E) ratios of 12 and 11 [4][5]. - The company’s average dividend yield from 2021 to 2023 was 6.64% [4]. Market Position and Strategy - The company has diversified its brand portfolio and is focusing on enhancing brand influence through innovative marketing strategies and improved retail training [4]. - The online sales channel has shown significant growth, with some product series achieving over 1 million CNY in sales on launch day [4].