freeonlinecasinonodeposit| CICC: Maintain Prada's "outperform industry" rating and raise its target price to HK$75

CICC released a research report saying that it maintained Prada's (01913) "outperform industry" rating, and raised its revenue forecast of 2024 and 2025 by 3% to 51% based on the continued strong momentum of the Prada and Miu Miu brands.Freeonlinecasinonodeposit9.6 billion euros and 5.616 billion euros, and based on the faster growth of the leather goods sector with sizeable profit margins, the net profit forecasts of 2024 and 2025 were raised 7 and 6 per cent to 757 million euros and 867 million euros, and the target price was raised by 7.1 per cent to HK $75. Company announces 1Q24 revenue updateFreeonlinecasinonodepositThe group's income grew by + 16% year-on-year at a fixed exchange rate, and by + 12% to 1.19 billion euros under the disclosure of financial reports, exceeding the consensus expectations of 1.17 billion euros in the institutional market and 1.16 billion euros in CICC, with a currency headwind impact of 500bp.

With the deepening of the 1Q24 earnings season, Prada Group has achieved hard-won results and is so far the only company with accelerated quarter-on-quarter growth of retail sales among all the peer companies that have reported results. The success of the Prada brand and Miu Miu brand leather goods division provides a further guarantee for the continued expansion of the group's profit margins. The bank's industry leader is still Prada.

The main points of the performance meeting are as follows: 1) in 2024, the management goal is for the group's revenue to grow faster than that of the industry, while maintaining the trend of gradual expansion of profit margins, 2H24 will see more clearly the improvement in profit margins brought about by increased operating leverage, as the annual marketing expenses are concentrated in 1H24. 2) despite a strong year-on-year base performance in April 2023 (April was the fastest growing month in 2023), April 2024 has maintained a growth trend similar to that of 1Q24. 3) at 1Q24, the group's sales from China achieved low double-digit year-on-year growth, strong growth in Japan, medium-digit growth in Europe, positive growth in South Korea and flat year-on-year growth in North America.

4) Chinese consumers' overseas spending on Prada Group products is still 20-30% lower than in 2019, but the proportion of high net worth individual travelers in the tourist composition has increased significantly. 5) from the perspective of the group as a whole, the growth of 1Q24 is mainly driven by sales volume, followed by price increases, and the contribution to the improvement of product sales structure is relatively limited. The group's 1Q24 grew slowly at the beginning of the quarter, followed by good business performance for the next 45 days, and slowed after the Spring Festival. 6) Management expects retail stores to expand only slightly in 2024, but by 2025, the number of stores under the Miu Miu brand will increase by 10-15 per cent and the number of stores under the Prada brand will increase by 5-10 per cent. 7) Management believes that the Miu Miu brand has low penetration in the North American market and the leather category, which is currently the source of strong Miu Miu growth. 8) for the Group and Prada brands, the leather category is the only category with month-on-month acceleration. 9) E-commerce currently accounts for about 10% of the group's revenue. 10) according to management, Prada-branded glasses are currently at the forefront of global eyewear brands.