supor(SZ:002032) Guotou Securities·2024-07-25 01:30Investment Rating - The investment rating for the company is maintained at "Buy - A" with a target price of 59.36 CNY for the next six months [3]. Core Insights - The company reported a revenue of 10.96 billion CNY for the first half of 2024, representing a year-over-year increase of 9.8%, and a net profit attributable to shareholders of 940 million CNY, up 6.8% year-over-year [1]. - In Q2 2024, the company achieved a revenue of 5.59 billion CNY, with a year-over-year growth of 11.3%, and a net profit of 470 million CNY, reflecting a 6.4% increase year-over-year [1]. - The growth in Q2 revenue was attributed to a recovery in demand in the European and American markets following inventory destocking, leading to a significant increase in orders from major export clients [1]. - The company has been focusing on innovation and expanding its O2O (Online to Offline) market strategies to achieve steady growth in domestic sales [1]. - The net profit margin for Q2 was 8.4%, a decrease of 0.4 percentage points year-over-year, primarily due to an increased proportion of high-cost performance products in response to a sluggish consumer environment [1]. - The company is expected to continue optimizing its channel layout and launching creative products, which should support steady revenue growth in the future [1]. Financial Summary - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.97 CNY, 3.33 CNY, and 3.68 CNY, respectively [2]. - The estimated revenue for the years 2024, 2025, and 2026 is projected to be 23.17 billion CNY, 25.83 billion CNY, and 27.95 billion CNY, respectively [2]. - The company’s net profit is expected to reach 2.38 billion CNY in 2024, 2.67 billion CNY in 2025, and 2.95 billion CNY in 2026 [2]. - The price-to-earnings (P/E) ratio is projected to decrease from 18.0 in 2022 to 12.6 in 2026, indicating an improving valuation over time [2]. - The net profit margin is expected to stabilize around 10.3% for the next few years, with a slight increase to 10.6% by 2026 [2].