Hongqi Chain(SZ:002697) KAIYUAN SECURITIES·2024-07-28 06:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][19] Core Views - The company is deeply engaged in the convenience store industry, focusing on enhancing its competitive advantages through adjustments in store operations and product offerings throughout the year [3][19] - The company reported a solid performance in the first half of 2024, with revenue increasing by 3.7% year-on-year and net profit rising by 3.8% [11][34] - The company aims to leverage its relationship with its controlling shareholder, a state-owned enterprise, to enhance resource allocation and stimulate growth [11][26] Financial Summary - As of July 26, 2024, the current stock price is 4.54 yuan, with a market capitalization of 61.74 billion yuan and a circulating market capitalization of 48.92 billion yuan [4] - The company achieved a revenue of 51.86 billion yuan in the first half of 2024, with a net profit of 2.67 billion yuan [11][34] - The projected earnings per share (EPS) for 2024-2026 are 0.42, 0.44, and 0.46 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 10.7, 10.3, and 9.8 [11][12] Business Performance - The company opened 16 new stores and renovated 202 existing stores in the first half of 2024, bringing the total number of stores to 3,655 [26] - Online sales reached nearly 500 million yuan, with 5.35 million customers attracted to physical stores through online channels [26][34] - The company’s gross margin for the first half of 2024 was 28.98%, reflecting a slight decrease of 0.37 percentage points year-on-year [34]