Investment Rating - The report assigns a "Buy" rating to the company [2][14]. Core Insights - The company reported a strong performance in Q1 2024, with a high single-digit growth in retail sales compared to the same period in 2023, continuing the growth trend from 2023 [2][14]. - The company achieved a revenue of 3.54 billion RMB in 2023, representing a year-over-year increase of 14.8%, with net profit reaching 530 million RMB, up 18.4% [2][14]. - The company plans to open 100-200 new stores in 2024, aiming for a total of 2,795 stores by the end of the year [2][14]. - The company expects to achieve a 20% growth in new retail business through platforms like Douyin live streaming [2][14]. - The projected earnings per share for 2024-2026 are 0.50, 0.55, and 0.61 RMB respectively, with a target price of 5.47 HKD per share based on a 10x PE ratio [2][14]. Financial Performance - The company’s revenue is projected to grow from 3.96 billion RMB in 2024 to 4.79 billion RMB in 2026, with year-over-year growth rates of 11.8%, 10.1%, and 9.7% respectively [4][14]. - The gross profit margin is expected to improve slightly, reaching 48.4% in 2024 and 48.9% by 2026 [12][14]. - The company’s net profit is forecasted to increase from 594 million RMB in 2024 to 732 million RMB in 2026, with growth rates of 12.1%, 11.3%, and 10.6% respectively [12][14]. Industry Overview - The men's clothing market in China is experiencing a recovery, with a retail sales growth of 3.8% in 2023 compared to 2022 [5][7]. - The market concentration is increasing, with the top 10 brands' market share rising from 16.9% in 2015 to 23.4% in 2023, indicating potential for further growth [5][7]. - The company is positioned as a leading player in the men's apparel sector, focusing on high-quality business and casual wear [7][9].
24Q1业绩亮眼，24全年指引彰显发展信心