红旗连锁：主业企稳，注重存量门店升级

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 5.69 CNY per share based on a 13x PE ratio for 2024 [5][18]. Core Insights - The company reported a revenue of 5.19 billion CNY for the first half of 2024, representing a year-on-year growth of 3.7%. The net profit attributable to shareholders was 270 million CNY, up 3.8% year-on-year [1][3]. - The company focuses on upgrading existing stores and enhancing product structure, with a total of 3,655 stores as of mid-2024, adding 16 new stores and renovating 202 old ones [1][3]. - The company has strengthened its online and offline integration, attracting 5.35 million customers through online channels, generating nearly 500 million CNY in online sales [1][3]. Financial Summary - Revenue (in million CNY): 10,020 (2022A), 10,133 (2023A), 10,598 (2024E), 11,126 (2025E), 11,573 (2026E) [3][11]. - Net Profit (in million CNY): 486 (2022A), 561 (2023A), 595 (2024E), 629 (2025E), 663 (2026E) [3][11]. - EPS (in CNY): 0.36 (2022A), 0.41 (2023A), 0.44 (2024E), 0.46 (2025E), 0.49 (2026E) [3][11]. - The company’s net profit growth rates are projected at 6.1% for 2024, 5.8% for 2025, and 5.4% for 2026 [1][3].