GF SEC expects EEKA FASHION's EPS for 2024, 2025, and 2026 to be 0.91, 1.06, and 1.21 yuan per share, respectively.
According to the Zhitong Finance APP, GF SEC has released a research report stating that it has initiated coverage of EEKA FASHION (03709), assigning a "Buy" rating. It is expected that from 2024 to 2026, the EPS will be 0.91/1.06/1.21 yuan per share, with a fair value of 11.42 HKD per share. According to the company's Earnings Reports, its core customer group consists of economically empowered women aged 30-45. In 2023, the company repositioned its vision as a "globally renowned Chinese light luxury brand management group." From 2018 to 2023, the company's revenue and Net income CAGR were 22.4% and 25.2%, respectively.
GF Securities' main points are as follows:
Women's Clothing Industry:
(1) The rise of the middle class and the "she economy" drives the expansion of the mid-to-high-end women's clothing market. (2) The competitive landscape of women's clothing in China is relatively fragmented, with mid-to-high-end women's clothing companies often adopting a multi-brand strategy. Compared to the major listed companies in women's clothing, this company exhibits higher performance growth, a greater number of brands, and multiple brands with considerable scale, reflecting its outstanding multi-brand management capability.
Core Competitiveness:
Exceptional multi-brand operation capability, bullish on long-term development momentum. According to the company's Earnings Reports, (1) exceptional multi-brand operation capability: platform architecture empowers coordinated operation of brands, with strong brand symbolism highlighting consumer memory points; (2) Products: actively expanding the R&D design team; exquisite craftsmanship and high-quality fabrics create luxurious designs and premium textures for commodities; advancing the commodity planning "Gold Triangle," with precise tiered management. (3) Channels: continuous upgrading of offline store images and locations; online, seizing traditional e-commerce platforms while actively laying out private domain flows in New Retail channels. (4) Marketing: fast growth in marketing investment, with various marketing methods capturing consumer mindset.
Looking to the future:
Seek progress while maintaining stability and comprehensively improve quality, with the vision of becoming a "Globally Renowned Chinese Luxury Brand Management Group": According to the company's Earnings Reports, the company plans to continue advancing reforms and upgrades in branding, products, channels, and supply chain, while continuously strengthening platform operation and systematic management capabilities.
