The company's recent situation
Recently, we participated in the Bienleven Order Fair survey. We continue to be optimistic about the brand's market competitiveness and medium- to long-term development, and update the company's products and development plans as follows:
reviews
Broaden product scenarios and price ranges, and increase the layout of functional fabrics. In 2024, the company's product plans are richer, and the number of SKUs is expected to increase significantly to better meet the needs of consumers in multiple scenarios and functions. In addition to urban commuting models and golf series, we are seeing more light outdoor, light sports series products, low-key and luxurious unbranded products, new Chinese clothing, etc. In terms of price, in 2024, the company plans to broaden the price range. On the one hand, more consumers will be able to access the Beinleven brand, and on the other hand, use more high-quality products to meet the needs of high-end customers. At the same time, the company has increased the use of functional fabrics, cooperated with world-renowned fabric suppliers such as Toyo Textile, Toray, Ou Yi, POLARTEC, GORE-TEX, and ECONYL to adhere to the “three highs and one new” product development concept of high quality, high grade, high technology, and continuous innovation as the product development concept to strengthen product competitiveness.
Channel image upgrade, structure optimization, channel competitiveness continues to improve. In terms of channels, in 2024, the company plans to increase the layout of more crowded and younger shopping center stores, which is beneficial to the acquisition of new customers and the growth of single store space. After channel adjustments in 2023, the company is expected to net open more than 100 companies in 2024. At the same time, the company continues to upgrade the image of terminal stores, strengthen shopping guide training, and improve the refined management of VIPs. We expect the same store to grow rapidly in 2024.
Kent & Curwen is expected to be the first to market in 24, and the multi-brand matrix continues to improve. Looking at the new brand plan, among the two international brands CERRUTI 1881 and Kent & Curwen acquired in 2023, the company expects Kent & Curwen to take the lead in opening stores in 2024, positioning the first-tier and new-tier younger and more fashionable consumer groups, complementing the main brand, further promoting the diversification, internationalization and high-end layout of the company's brands, and laying the foundation for the company to build a global luxury group.
Profit forecasting and valuation
We kept our 2023 and 2024 profit forecasts unchanged at 1,028 million yuan and introduced profit forecasts of 1.01 billion yuan for 2025. The current stock price corresponds to a price-earnings ratio of 15 times/13 times for 24/25, respectively. At the same time, the outperforming industry rating and target price of 43.24 yuan remained unchanged, corresponding to 21 times the 2024 price-earnings ratio and 18 times the 2023 price-earnings ratio, with 40.8% upward space compared to the current stock price.
risks
Demand recovery falls short of demand, progress in store expansion falls short of expectations, and new brand cultivation falls short of expectations.