In the first quarter of '24, revenue increased 4.58% year over year, and net profit to mother increased +11.40% year over year. In the first quarter of 2024, the company achieved operating income of 3.139 billion yuan, +4.58% year on year; realized net profit of 346 million yuan, +11.40% year on year; realized net profit after deduction of 338 million yuan, up +15.55% year on year; basic earnings per share was 0.13 yuan, compared to 0.12 yuan for the same period last year.
Gross margin and net profit margin both increased, and cost investment increased during the period. The company's gross margin for the first quarter of 2024 was 46.63%, +2.29pct year-on-year. On the cost side, the cost rate for the first quarter of 2024 was 28.26%, +0.14pct year on year. Among them, sales expense rate/management expense rate/R&D expense rate/financial cost ratio were 24.47%/4.38%/1.48%/-2.07%, respectively, +1.07pct/+0.10pct/+0.12pct/-1.14pct, year-on-year, respectively. The company's net margin for the first quarter of 2024 was 11.00%, +0.65pct year over year.
A cash dividend of 3.00 yuan (tax included) will be distributed to all shareholders for every 10 shares. The company held the 2023 Annual General Meeting of Shareholders on April 25, 2024 to review and approve the “Company's 2023 Profit Distribution Plan”. The company's 2023 equity distribution plan is to distribute RMB 3.00 in cash (tax included) to all shareholders based on the company's current total share capital of 26.94 shares; after tax deduction, Hong Kong market investors holding shares through Shenzhen Stock Connect, QFII, RQFII, individuals and securities investment funds holding pre-initial limited sales shares and securities investment funds will pay 2.70 yuan per 10 shares; personal dividend dividend tax on holding restricted shares after initial launch, equity incentive restricted shares and unlimited tradable shares will be levied at a differentiated tax rate. Tax, pending individual stock transfers From time to time, the taxable amount is calculated based on the shareholding period. The share registration date for this profit distribution is:
On May 9, 2024, the exclusion date is: May 10, 2024. The distribution targets: All shareholders of the Company registered with the Shenzhen Branch in China after the Shenzhen Stock Exchange closes on the afternoon of May 9, 2024.
Investment advice: The company mainly focuses on Semma and Barabara brands, and continues to deepen brand building, channel expansion and marketing efficiency. The company's online channels are expected to grow steadily, offline channels will continue to be optimized, and franchise and joint store efficiency will improve. Based on the encryption of Barabara's second- and third-tier shopping centers and basic Semma stores, the development of family stores to test the waters and progress overseas has become an important growth opportunity. The company's 2024Q1 performance was excellent. Both gross margin and revenue went hand in hand, and there is plenty of room for further improvement in performance. The company's 2024-2026 EPS is predicted to be 0.50 yuan, 0.56 yuan, and 0.62 yuan respectively, and the corresponding PE will be 13.4X, 12.0X, and 10.7X, respectively, maintaining an investment rating of “increased holdings”.
Risk warning: macroeconomic fluctuation risk, brand operation risk, raw material price change risk, inventory management and price decline risk, import and export trade risk.