BIEM(SZ:002832) Orient Securities·2024-04-29 03:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 37.81 CNY based on a 19x PE valuation for 2024 [2][4][7] Core Insights - The company achieved a revenue of 3.54 billion CNY in 2023, representing a year-on-year growth of 22.6%, and a net profit attributable to the parent company of 911 million CNY, up 25.2% year-on-year [1][3] - In Q1 2024, the company's revenue and net profit attributable to the parent company grew by 17.6% and 20.4% year-on-year, respectively, exceeding market expectations [1] - The company plans to distribute a dividend of 570 million CNY, with a dividend payout ratio of 62.7%, significantly higher than the previous year [1] - The operational quality has improved, with inventory turnover days decreasing by 42 days to 346 days, and the operating cycle reduced by 46 days to 375 days, indicating enhanced operational efficiency [1] - The internationalization strategy is progressing steadily, with the acquisition of global trademark rights for the CERRUTI 1881 and KENT CURWEN brands, and the establishment of a Paris R&D center [1] - The company continues to lead industry growth despite overall pressure in the brand apparel sector, supported by its unique brand positioning and high return on equity (ROE) of around 20% from 2019 to 2022 [1] Financial Summary - Revenue (in million CNY): 2022A: 2,885; 2023A: 3,536; 2024E: 4,311; 2025E: 5,102; 2026E: 5,948 [3][10] - Net profit (in million CNY): 2022A: 728; 2023A: 911; 2024E: 1,138; 2025E: 1,382; 2026E: 1,658 [3][10] - Earnings per share (in CNY): 2022A: 1.27; 2023A: 1.60; 2024E: 1.99; 2025E: 2.42; 2026E: 2.91 [3][10] - Gross margin: 2022A: 77.4%; 2023A: 78.6%; 2024E: 78.8%; 2025E: 78.9%; 2026E: 78.9% [3][10] - Net margin: 2022A: 25.2%; 2023A: 25.8%; 2024E: 26.4%; 2025E: 27.1%; 2026E: 27.9% [3][10] - Return on equity (ROE): 2022A: 19.7%; 2023A: 20.2%; 2024E: 22.0%; 2025E: 23.2%; 2026E: 23.6% [3][10]