24Q1 revenue of 3.14 billion yuan increased 4.6%, net profit attributable to mother of 350 million yuan increased 11.4%, 24Q1 revenue of 3.14 billion increased 4.6%. Full-system terminal retail (including online/offline, direct operation/franchise) increased 1.6% in 24Q1. Among them, Semma decreased by 1.5% and Balabara also increased by 3.3%; if viewed by channel, online also increased by 7.7% and offline by 0.3%. System-wide terminal retail sales maintained single-digit growth in April.
The 24Q1 net profit attributable to mother was 350 million yuan, an increase of 11.4%. After deducting non-return to mother, it was 340 million yuan, an increase of 15.6%.
The gross profit margin of 24Q1 increased by 46.6%, the net profit margin increased by 11% by 0.7pct24q1, 46.6%, and the gross margin of the children's and casual wear business increased; on the one hand, the gross margin of the children's and casual wear business increased; on the one hand, the company's product strength and product added value increased, and the sales discount rate increased accordingly; on the other hand, it benefited from the company's improved supply chain management capabilities to effectively control product costs.
During the 24Q1 period, the rate increased by 0.1 pct. Among them, the sales rate was 24.5% increased by 1.1 pct, the management rate was 4.4% increased by 0.1 pct, the R&D rate was increased by 0.1 pct, and the financial rate -2.1% decreased by 1.1 pct. The reduction in financial expenses was mainly due to an increase in interest income from term deposits in the current period; the 24Q1 company's net interest rate was 11%, up 0.7 pct
Casualwear stores continued to be optimized and adjusted. As of the end of 24Q1, there was a net increase of 120 children's stores. The total number of stores in the company was 7911, including 2,557 casual wear stores (net decrease of 146 in Q1) and 5,354 children's clothing stores (net increase of 120 in Q1); by channel, there were 721 direct stores, 103 joint businesses, and 7087 franchises. Along with channel restructuring and further expansion of digital empowerment, the company's store efficiency and floor efficiency have improved markedly.
Optimize inventory and move forward lightly to improve operational efficiency
By the end of 24Q1, the company's inventory was 2.59 billion, a year-on-year decrease of 23.3% and a year-on-month decrease of 5.8%; the number of inventory turnover days was 151 days, a year-on-year decrease of 51 days.
The company's inventory level continues to improve, and the structure is further optimized, thanks to: ① the company strengthens consumer research, formulates sales strategies and OTB plans from the product planning process, and increases the flexible supply ratio; ② dynamically analyzes actual and planned deviations during the sales process and adjusts strategies in a timely manner; ③ increases inventory structure control and increases sell-out rate.
The company continues to deepen the deployment of global digital retail stores, promote online and offline business integration and digital transformation, and greatly improve operating efficiency. At the same time, it also focuses on optimizing product operation mechanisms and improving product operation efficiency around global inventory, membership access, and single store operation management.
Maintain profit forecasts and maintain “buy” ratings
The company continues to promote the implementation of a new retail model. In 24, it plans to focus on improving product operation efficiency, speeding up channel construction, and continuing to improve digital operation capabilities, and accelerate overseas business layout to explore incremental markets; we expect the company's net profit to be 1,347/15.17/1,686 billion yuan, EPS 0.50/0.56/0.63 yuan/share, respectively, and the corresponding PE is 13/11/10X, respectively.
Risk warning: Increased competition risks in the industry; risks arising from changes in the macroeconomic situation; risk of losing key talents.