23Q2 income increased by 13.52% in 447 million, net profit in return to mother 47 million increased by 447 million in 26.49%23Q2, increased by 13.52% (23Q1 decreased by 10.54%), net profit in return to mother increased by 47 million, increased by 26.49% (23Q1 decreased by 21.22%), net profit in non-return increased by 45 million, increased by 38.78% (23Q1 decreased by 20.23%).

23H1 income 898 million, same increase 0.02%, return mother net profit 96 million, same decrease 3.42%, deduct non-return mother net profit 90 million, same increase 1.28%.

Sub-channel, self-sales revenue of 607 million, gross profit margin of 77.26%; e-commerce revenue of 228 million yuan, gross profit margin of 55.48%; distribution income of 47 million yuan, gross profit margin of 69.34%.

The rising performance of the company is mainly due to the continuous improvement of the anti-risk ability and development resilience of the company. The company focuses on the production and operation of high-end women's clothing, and strengthens the deep ploughing around the operation power, product strength, brand strength, organizational strength and so on. We will continue to promote the deepening reform of enterprise digitization and informatization, reorganize the core content of the brand, take various measures to build customer assets, accelerate the enrichment of three-dimensional marketing system, and promote the release of potential energy in various channels. Comprehensively promote enterprise construction, in-depth casting high-quality development drive.

23H1 gross profit margin 71.15%, same increase 1.23pct, return net profit 10.67%, same minus 0.38pct23H1 company gross profit 71.15%, same increase 1.23pct, return net profit 10.67%, same minus 0.38pct.

The company's sales, management, R & D and financial rates have increased slightly. 23H1's sales / management / R & D / rates and year-on-year rates are 44.64% (yoy+0.78pct), 4.45% (yoy+0.36pct) and 4.34% (yoy+0.32pct), respectively, and the financial rate is-0.99% (yoy+0.08pct).

Adhere to independent R & D design and maintain stable R & D investment

Since its establishment, each brand insists on independent design, adheres to the concept of fashion innovation, and innovates constantly on the basis of each brand DNA, in order to achieve brand sublimation and product iteration. Mr. Sun Ruihong, the actual controller and brand creative director of the company, generally controls the direction and level of R & D design. At present, he has established a professional and high-quality design team of more than 400 people with the actual controller Mr. Sun Ruihong as the core. 2023H1 R & D expenditure is 39 million yuan, an increase of 8.03% over the same period last year.

Sort out the core content of the brand and create a brand portrait in depth.

23H1, the company's main brands JORYA and A NM A NI (Enmanlin) vertical ploughing development. JORYA focuses on combing brand equity and building customer equity through multi-level market research, upgrading member management system, AI intelligent outbound call to improve repurchase rate, cooperation with senior member system consulting companies, reshaping brand image positioning, customer group portraits, market performance and competition differences, while optimizing brand strength and brand equity performance, improving brand landing ability and overall management, and creating value for customers. And through the establishment of customer system, the formation of private domain flow pool, the completion of customer assets digitization and customer assets accumulation and management. A NM A NI (Enmanlin) is to deepen the brand image of elegant women's wear, steadily develop the Daishu market, timely adjust the product structure and layout, strengthen the diversity of core categories, and broaden the product pricing space to cater to different consumer groups.

Strengthen the application of digital technology and grasp the reform effect of digital economy

In recent years, the company's business continues to develop, production capacity continues to expand, production automation, intelligence, standardization level has been greatly improved, the introduction of RFID radio frequency identification technology. In August 2023, the company officially launched the "Digital Internet of things-RFID Project". After the project is completed, it will effectively optimize supply chain management, achieve rapid receipt and delivery, efficient logistics distribution, accurate data collection in fitting rooms and anti-counterfeiting and anti-channeling of goods, improve the company's operational efficiency, enhance customer experience, build a more efficient and intelligent supply chain, and intelligent manufacturing will promote high-quality development.

Adjust profit forecast and maintain "buy" rating

Taking into account the weak market demand led to increased competition at the supply side, the overall price of clothing products is weak, the clothing industry as a whole is under pressure repair period; as well as the company's 22 years and 23H1 performance, we adjust the profit forecast. We estimate that the return net profit in 23-25 years is 2.13,2.52 and 292 million yuan respectively (the pre-23-24 value is 3.92 yuan and 469 million yuan respectively), the EPS is 0.50,0.59,0.68 yuan per share (the 23-24 year value is 0.91,1.09 yuan per share respectively), and the corresponding PE is 20,17,15X respectively.

Risk tips: industry competition risk; human resources cost rising risk; unable to accurately grasp the fashion trend of women's wear and the design risk of market demand changes.