DAZZLE FASHION(SH:603587)2024-04-30 01:32Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market benchmark [17][24]. Core Insights - The company's 2023 performance met expectations, with a revenue increase of 10.4% to 2.649 billion yuan and a net profit growth of 28.3% to 494 million yuan. The fourth quarter of 2023 saw a revenue increase of 17.9% year-on-year [17]. - The first quarter of 2024 showed a revenue decline of 12% to 537 million yuan and a net profit drop of 33% to 110 million yuan, attributed to high base effects and unfavorable weather conditions impacting demand [17]. - The company announced a cash dividend of 8 yuan per 10 shares, resulting in a dividend payout ratio of approximately 77%, with total cash returns reaching 85% when including share buybacks [17]. - The main brand DA achieved a revenue growth of 8.9% to 1.43 billion yuan, while the DZ brand saw a 14.5% increase to 1.02 billion yuan. The men's brand RA experienced significant growth of 56.1% to 46.78 million yuan [17]. - Online sales grew by 29.5% to 400 million yuan, with a gross margin improvement of 1 percentage point to 76.8% [17]. - The company plans to distribute at least 60% of its net profit to shareholders in cash annually from 2024 to 2026, ensuring strong shareholder returns [17]. Summary by Sections Financial Performance - 2023 total revenue was 2.649 billion yuan, with a net profit of 494 million yuan. The projected revenues for 2024, 2025, and 2026 are 2.611 billion yuan, 2.830 billion yuan, and 3.042 billion yuan respectively [13][29]. - The gross margin for 2023 was 74.5%, with a slight improvement to 75.6% in Q1 2024 [20][29]. Market Position - The company focuses on the mid-to-high-end women's clothing sector, maintaining strong brand power and stable high profitability [17]. - The average PE ratio for comparable companies in 2024 is projected at 14 times, with the company being valued at 14 times PE, indicating a target market value of 6.6 billion yuan, suggesting a 10% upside potential [17]. Shareholder Returns - The company emphasizes shareholder returns with a robust cash dividend policy and significant cash reserves, ensuring sustainability in dividend payouts [17].