Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$6.05, reflecting a 10% decrease from the previous target price [1][3][5]. Core Insights - The company is expected to achieve revenue and net profit growth of 6.0% and 27.3% respectively in 2024, reaching RMB 15.2 billion and RMB 1.31 billion [2][3]. - The operational performance in Q2 2024 aligns with expectations, with a projected 10.3% year-on-year growth in both revenue and net profit for the first half of 2024 [1][2]. - The company is adapting to current consumer trends by emphasizing cost-effectiveness and increasing the supply of low-priced products online, which is expected to drive a 21% year-on-year growth in online revenue [2][3]. Summary by Sections Revenue and Profit Forecast - The company anticipates a total revenue of RMB 15.2 billion in 2024, with a year-on-year growth of 6.0% [2][3]. - The net profit is projected to reach RMB 1.31 billion, reflecting a 27.3% increase compared to the previous year [2][3]. - The report indicates that the company's overall revenue growth is expected to be 10.0% when excluding the impact of KP Global [2][3]. Operational Performance - In Q2 2024, the company's brand revenue is expected to grow approximately 10%, with online sales increasing by around 25% [1][2]. - The professional sports division is projected to see a revenue increase of 60.0% in the first half of 2024, driven by new store openings and strong same-store sales growth [1][2]. Financial Metrics - The report outlines a slight improvement in gross margin by 0.4 percentage points to 42.6% for 2024, attributed to better discount management [2][3]. - The company’s operating profit margin is expected to remain stable at 15.1% for the first half of 2024, with a net profit margin of 10.2% [1][2]. Valuation - The report adjusts revenue forecasts for 2024-2026 downwards by 2.8%, 4.6%, and 6.0% respectively, while net profit estimates are adjusted upwards by 2.0% for 2024 [3][8]. - The target price corresponds to a 10x P/E ratio for 2025, indicating a potential upside of 16% from the current stock price [3][5].
特步国际：预计2024年营收/归母净利润分别同比增长6.0%/27.3%