Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 82.62 HKD based on a 2025 PE of 25X [2][9]. Core Insights - Miu Miu's retail revenue grew by 93% in 2024, with EBIT margin reaching a 10-year high. Overall revenue increased by 14.9% YoY to 5.43 billion Euros, while net profit rose by 25% YoY to 839 million Euros [2][9]. - The company is expected to continue its strong growth trajectory, with net profit forecasts of 972 million Euros, 1.088 billion Euros, and 1.191 billion Euros for 2025-2027, representing growth rates of 15.9%, 11.9%, and 9.5% respectively [2][9]. Financial Data and Forecasts - Key financial metrics for the company include: - Revenue (million Euros): 2023: 4726, 2024: 5432, 2025E: 6059, 2026E: 6646, 2027E: 7207 [2][6]. - Net Profit (million Euros): 2023: 671, 2024: 839, 2025E: 972, 2026E: 1088, 2027E: 1191 [2][6]. - Gross Margin (%): 2024: 79.84%, 2025E: 79.80%, 2026E: 79.90%, 2027E: 80.00% [2][6]. - Return on Equity (%): 2024: 19.07%, 2025E: 19.84%, 2026E: 19.93%, 2027E: 19.63% [2][6]. Retail Performance and Strategy - The retail network optimization is evident, with a slight decrease in the number of direct stores to 609, and a net opening of 3 stores. The company plans to continue retail investments and expand Miu Miu into new markets [2][9]. - Retail revenue growth in 2024 was notable across regions, with Asia-Pacific, Europe, Americas, Japan, and the Middle East showing growth rates of 13%, 18%, 9%, 46%, and 26% YoY respectively [2][9]. Management Changes - Miu Miu appointed Silvia Onofri as the new CEO, who has extensive experience in the luxury sector, previously holding positions at Bulgari and Bally [2][9].

Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Insights - The report highlights a significant growth in retail revenue for Miu Miu, which increased by 93% in 2024, with EBIT margin reaching a 10-year high. The overall revenue for 2024 is projected to grow by 14.9% to €5.432 billion, with a net profit increase of 25% to €839 million [5][6] - The company is expected to continue its positive trajectory with revenue forecasts of €6.059 billion in 2025, €6.646 billion in 2026, and €7.207 billion in 2027, reflecting year-on-year growth rates of 11.5%, 9.7%, and 8.4% respectively [5][6] - The report also notes the appointment of a new CEO for Miu Miu, which may influence future brand strategies and performance [6] Financial Performance and Forecast - Key financial data and projections include: - Revenue (million euros): 2023: 4,726; 2024: 5,432; 2025E: 6,059; 2026E: 6,646; 2027E: 7,207 - Net profit (million euros): 2023: 671; 2024: 839; 2025E: 972; 2026E: 1,088; 2027E: 1,191 - EPS (euros): 2023: 0.26; 2024: 0.33; 2025E: 0.38; 2026E: 0.43; 2027E: 0.47 - Gross margin: 2024: 79.84%; 2025E: 79.80%; 2026E: 79.90%; 2027E: 80.00% [5][6][10] Market Performance - The report indicates that the company's retail performance is strong, with significant contributions from both direct retail and distribution channels. The direct retail network is being optimized, with a focus on expanding Miu Miu's presence in untapped markets [6][10] - The geographical breakdown of retail revenue growth for 2024 shows: - Asia Pacific: +13% - Europe: +18% - Americas: +9% - Japan: +46% - Middle East: +26% [6] Valuation and Earnings Forecast - The company is expected to maintain a high EBIT margin, with projections for net profit growth of 15.9% in 2025, 11.9% in 2026, and 9.5% in 2027. The report assigns a price-to-earnings (P/E) ratio of 23-25X for 2025, translating to a fair value range of HKD 76.01-82.62 [6][10]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4]. Core Views - The company reported a revenue of 4.672 billion yuan for 2024, representing a year-on-year growth of 19.6%. The net profit attributable to the parent company was 698 million yuan, reflecting a growth of 25% [3][4]. - The company is focusing on sustainable development and is actively adapting to industry trends, which has led to significant revenue growth in the first half of 2024 [4]. - The acquisition of land for production capacity optimization is a strategic move to enhance manufacturing capabilities and reduce costs [4]. - The company is expanding its global footprint, with ongoing projects in Vietnam and other regions, which supports its internationalization strategy [4]. - Profit forecasts for 2024-2026 indicate a net profit of 6.98 billion yuan in 2024, 7.97 billion yuan in 2025, and 9.40 billion yuan in 2026, with a target price range of 13.64 to 17.05 yuan for 2025 [4]. Financial Data and Forecasts - Key financial data for the company includes: - Revenue: 3.907 billion yuan in 2023, projected to grow to 4.672 billion yuan in 2024, 5.289 billion yuan in 2025, and 6.129 billion yuan in 2026 [3][8]. - Net Profit: 558 million yuan in 2023, expected to rise to 698 million yuan in 2024, 797 million yuan in 2025, and 940 million yuan in 2026 [3][8]. - EPS: Expected to increase from 0.48 yuan in 2023 to 0.60 yuan in 2024, 0.68 yuan in 2025, and 0.80 yuan in 2026 [3][8]. - Gross Margin: Projected to improve from 40.9% in 2023 to 42.5% in 2026 [3][8]. - Return on Equity: Expected to rise from 12.8% in 2023 to 19.8% in 2026 [3][8].