DAZZLE FASHION(SH:603587) Orient Securities·2024-04-29 02:02Investment Rating - The report has adjusted the investment rating to "Accumulate" due to short-term growth pressures and challenges in the mid-to-high-end women's clothing sector [7]. Core Views - The company achieved a revenue of 2.65 billion with a year-on-year growth of 10.4% and a net profit attributable to the parent company of 494 million, reflecting a year-on-year increase of 28.3% in 2023 [1]. - The online channel showed strong performance in 2023, with revenue growth of 29.5%, while offline channels grew by 7.7% [1][6]. - The company plans to integrate the DZ brand into a multi-channel retail division to enhance operational efficiency and drive growth [1]. Financial Performance - In 2023, the revenue from different brands varied, with DA, DM, DZ, and RA showing year-on-year growth rates of 8.9%, -7.4%, 14.5%, and 56.1% respectively [1]. - The gross profit margin for DA, DZ, and RA brands declined slightly, while DM saw a marginal increase [1]. - The company reported a net cash flow from operating activities of 700 million, up from 496 million in the previous year [1]. Future Outlook - For 2024, the company expects earnings per share to be 1.10, with a target price set at 14.24 based on a 13x PE valuation [7][39]. - The company anticipates challenges in the retail environment for mid-to-high-end women's clothing, which may impact growth in the short term [7][39].