BIEM(002832) 申万宏源·2024-11-01 01:13Investment Rating - The report maintains a "Buy" rating for the company, with a target market value of 17 billion yuan, representing a 52% upside potential from the current market value [7] Core Views - The company's performance significantly outperforms the industry, with Q1-3 2024 revenue reaching 3 billion yuan (up 7.3% YoY) and net profit of 762 million yuan (up 0.55% YoY) [4] - Despite a challenging domestic retail environment, the company achieved double-digit growth in revenue and profit, with Q3 revenue at 1.06 billion yuan (down 4.4% YoY) and net profit of 283 million yuan (down 17.3% YoY) [4] - The company's high-end brand positioning supports a gross margin of 76.4% in Q1-3 2024, with Q1/Q2/Q3 gross margins at 76.0%/81.3%/73.8% respectively [5] - The launch of the new brand Kent&Curwen marks the beginning of the company's second growth curve, with multiple direct stores opening in China and a successful debut at the 2025SS London Fashion Show [6] Financial Performance - The company's Q1-3 2024 operating cash flow was 650 million yuan, with a cash conversion ratio of 0.86, and cash and financial assets totaling over 2.6 billion yuan [6] - Inventory at the end of Q3 2024 was 890 million yuan (up 28% YoY), with inventory turnover days at 304 days (up 8 days YoY) [6] - The company's net profit margin for Q1-3 2024 was 25.4%, down 1.7 percentage points YoY [5] - The company's ROE for Q1-3 2024 was 15.0%, with expected ROE for 2024-2026 at 17.5%/18.4%/19.3% respectively [8] Future Projections - The company's revenue is expected to grow to 3.778 billion yuan in 2024 (up 6.8% YoY), 4.159 billion yuan in 2025 (up 10.1% YoY), and 4.575 billion yuan in 2026 (up 10.0% YoY) [8] - Net profit is projected to reach 920 million yuan in 2024 (up 1.0% YoY), 1.06 billion yuan in 2025 (up 15.2% YoY), and 1.22 billion yuan in 2026 (up 15.1% YoY) [8] - The company's EPS is expected to be 1.61 yuan in 2024, 1.86 yuan in 2025, and 2.14 yuan in 2026 [8] Industry Comparison - The company's PE ratio for 2024-2026 is projected at 12/11/9 times, compared to the industry average PE of 21/16/14 times for comparable companies [11] - The company's market value as of October 31, 2024, is 11.2 billion yuan, significantly lower than the industry leader Anta Sports' market value of 234.7 billion yuan [11]