DAZZLE FASHION(SH:603587) GOLDEN SUN SECURITIES·2024-04-29 03:32Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - In 2023, the company achieved a revenue of 2.65 billion yuan, a year-on-year increase of 10%, and a net profit of 494 million yuan, up 28% year-on-year. The company plans to distribute a cash dividend of 0.8 yuan per share, representing 85.3% of the net profit [2][3]. - The company experienced a significant performance drop in Q1 2024, with revenue decreasing by 12% year-on-year to 540 million yuan and net profit down 33% to 110 million yuan, attributed to a reduction in channel scale [2][3]. - The company’s brand matrix shows clear differentiation, with DZ and RA brands performing relatively well, while DA's channel scale continues to shrink [2]. Financial Summary - Revenue and Profit Forecasts: The company is expected to generate revenues of 2.70 billion yuan in 2024, with a projected net profit of 518 million yuan, reflecting a growth rate of 5% year-on-year [3][12]. - Key Financial Metrics: The company’s P/E ratio is projected to be 11.6 times in 2024, with an expected EPS of 1.09 yuan [3][12]. - Cash Flow: The operating cash flow for 2023 was 703 million yuan, with a net cash increase of 502 million yuan [9][12]. Brand and Channel Performance - Brand Performance: In 2023, the revenue for DA, DM, DZ, and RA brands was 1.43 billion, 150 million, 1.02 billion, and 50 million yuan respectively, with growth rates of +8.9%, -7.4%, +14.5%, and +56.1% [2]. - Channel Performance: E-commerce channels showed robust growth, with a revenue increase of 29.5% in 2023, while offline stores faced challenges with a revenue decline of 20% in Q1 2024 [2][3]. Market Position - The company is positioned as a leading player in the mid-to-high-end women's clothing sector, with strong product design and supply chain management capabilities [2].