CBEST(SH:600729)2024-07-17 07:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [13]. Core Views - The company reported a decline in revenue and net profit for the first half of 2024, with total revenue of 8.98 billion yuan, down 11.56% year-on-year, and a net profit of 712 million yuan, down 21.06% year-on-year [13]. - The decline in net profit is attributed to a high base effect from the previous year and a decrease in non-recurring gains, with the core net profit showing a smaller decline of 4.52% after adjusting for these factors [13]. - The company is actively developing new business formats, such as fresh discount stores, which have shown promising sales performance since their opening [13]. - A new leadership team has been appointed, expected to enhance the company's strategic direction and operational efficiency [13]. - The company is projected to achieve net profits of 1.436 billion yuan, 1.565 billion yuan, and 1.735 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 6, 5, and 5 [13]. Financial Summary - For 2024, the company expects total revenue of 19.811 billion yuan, with a year-on-year growth rate of 4.4% [4]. - The projected net profit for 2024 is 1.436 billion yuan, reflecting a growth rate of 9.2% compared to the previous year [4]. - The company's gross margin is expected to stabilize around 25.8% for the next few years [4].