Guosheng Securities: Maintains a "buy" rating on Semir Apparel, high dividends are attractive.

Guosheng Securities research report pointed out that Semir Apparel's performance meets expectations and the high dividend is attractive. In 2025, the company's revenue is expected to increase by 3% year-on-year, while the net profit attributable to its parent is expected to decrease by 22% year-on-year. The company plans to distribute a total of 808 million yuan in dividends for the year, with a high dividend payout ratio of 91% and a dividend yield of 5.5%. The scale of children's clothing is stable and expanding, while the profitability of adult clothing is optimized. The expansion of stores and revenue is continuously expanding, while the scale of main business is shrinking. The company has good cash flow management and normal inventory performance. Based on industry conditions, we predict that the company's revenue will grow steadily and rapidly in the first quarter of 2026. Taking into account the overall business planning and cost investment for the year, we estimate that the company's revenue is expected to grow by a high single-digit percentage in 2026, and the net profit attributable to its parent is expected to accelerate faster than revenue growth. The company is a leader in popular apparel and children's clothing, and it is expected that the net profit attributable to its parent will be 1.03 billion yuan in 2026, 1.14 billion yuan in 2027, and 1.26 billion yuan in 2028, corresponding to a PE ratio of 14 times in 2026, and maintaining a "buy" rating.