红旗连锁：费用率优化，主业利润有所增加

Investment Rating - The report maintains a "Buy" rating for the company [21]. Core Views - The company is recognized as a rare large-scale profitable convenience store leader in China, showing growth potential in store expansion, daily sales, and gross margin [19]. - Despite a high base in 2023, the company's revenue and net profit remain relatively stable [19]. - The company achieved a revenue of 5.186 billion yuan in H1 2024, a year-on-year increase of 3.67%, and a net profit attributable to the parent company of 267 million yuan, up 3.81% year-on-year [1]. Financial Performance - In H1 2024, the company reported a revenue of 5.186 billion yuan, with a net profit of 267 million yuan, and a non-recurring net profit of 241 million yuan [1]. - For Q2 2024, the company achieved a revenue of 2.515 billion yuan, a year-on-year increase of 2.75%, but the net profit attributable to the parent company decreased by 10.95% to 103 million yuan [1]. - The company's main business net profit in H1 2024 was 207 million yuan, reflecting a year-on-year increase of 6.14% [2]. Future Projections - The company is projected to achieve revenues of 10.437 billion yuan, 10.750 billion yuan, and 11.072 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 571 million yuan, 590 million yuan, and 624 million yuan [19]. - The expected EPS for 2024, 2025, and 2026 are 0.42 yuan, 0.43 yuan, and 0.46 yuan respectively [19]. Operational Insights - The company has focused on store renovations and online customer acquisition, successfully attracting 5.35 million customers online in H1 2024, contributing to nearly 500 million yuan in online sales [18]. - The company has remodeled 202 old stores and opened 16 new stores, bringing the total to 3,655 stores by the end of June 2024 [18]. Cost Management - The gross margin for H1 2024 was 28.98%, a decrease of 0.37 percentage points year-on-year, while the overall expense ratio improved, with total expenses decreasing by 0.56 percentage points to 24.1% [6].