地素时尚：延续高分红，期待经营质量提升

Investment Rating - The report maintains a "Buy" rating for the company with a target price set above the current price of 12.76 CNY [7][14]. Core Insights - The company reported a revenue of 1.426 billion CNY for the DA brand, an increase of 8.9%, with a gross margin of 75.2%, down by 1.1 percentage points. The DM brand saw a revenue decrease of 7.4% to 152 million CNY, while the DZ brand's revenue increased by 14.5% to 1.02 billion CNY, with a gross margin of 72.3%, down by 0.6 percentage points. The RA brand experienced a significant revenue increase of 56.1% to 47 million CNY, with a gross margin of 81.9%, down by 0.2 percentage points [4][22]. - The company has implemented a digital operation strategy to enhance supply chain capabilities and improve consumer engagement through differentiated marketing efforts [11][21]. - The financial forecast for the company indicates a projected net profit of 5.1 billion CNY in 2024, with an expected EPS of 1.1 CNY per share, reflecting a decrease from previous estimates [11][22]. Financial Performance - The company reported a total revenue of 2.4 billion CNY in 2022, with a growth rate of -17.16%. The EBITDA for the same year was 602.34 million CNY, and the net profit attributable to the parent company was 384.55 million CNY, reflecting a decline of 44.23% [8][26]. - In Q1 2024, the company reported a revenue of 537 million CNY, a decrease of 12.0%, and a net profit of 110 million CNY, down by 33.0% [6][22]. - The company’s gross margin for 2023 was reported at 74.5%, a decrease of 0.9 percentage points, while the net margin improved to 18.6%, an increase of 2.6 percentage points [21][22]. Market Position and Strategy - The company is focusing on channel expansion to fill market gaps and is developing a national marketing network that emphasizes both first and second-tier cities while also targeting third and fourth-tier cities [5][12]. - The company plans to continue enhancing its retail support and marketing efforts, aiming to build a smart supply chain and introduce new brands and business lines [21][22].