DAZZLE FASHION(SH:603587) Guotai Junan Securities·2024-04-29 02:02Investment Rating - The investment rating for the company is "Accumulate" with a target price of 14.95, down from the previous forecast of 17.76 [14]. Core Views - The company has shown steady revenue growth in 2023, with a year-on-year increase in net profit of 28%. However, due to a significant reduction in offline store numbers and more rational end-user demand, short-term performance is under pressure [12][14]. - The company maintains a high dividend payout, reflecting confidence in future development, with a dividend payout ratio of 77% in 2023 [12][14]. - The report indicates that the company's performance is expected to gradually recover as channel adjustments are implemented [12]. Financial Summary - Revenue Growth: The total revenue for 2023 is projected at 2,649 million, a 10.4% increase from 2022. The forecast for 2024 is 2,708 million, with a modest growth rate of 2.2% [2]. - Net Profit: The net profit for 2023 is expected to be 494 million, reflecting a 28.3% increase compared to 2022. The forecast for 2024 is 547 million, indicating a growth of 10.9% [2]. - Profitability Ratios: The EBIT margin is projected to increase from 23.2% in 2023 to 26.1% in 2024, while the net profit margin is expected to rise from 18.6% to 20.2% in the same period [2]. - Valuation Ratios: The PE ratio is forecasted to decrease from 12.14 in 2023 to 10.94 in 2024, indicating a more attractive valuation over time [2]. Company Overview - The company operates as a multi-brand fashion group, focusing on mid to high-end women's apparel design, promotion, and sales. It targets women aged 18-45, the demographic with the highest clothing consumption capacity [3].