SCSF(SH:600779) GF SECURITIES·2024-07-28 12:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 43.0 CNY per share, compared to the current price of 35.84 CNY [4][2]. Core Insights - The company reported a revenue of 1.72 billion CNY for the first half of 2024, representing a year-on-year increase of 12.6%. The net profit attributable to the parent company was 240 million CNY, up 19.5% year-on-year [2][3]. - In Q2 2024, the company achieved a record revenue of 790 million CNY, a 16.6% increase year-on-year, with net profit attributable to the parent company reaching 56.12 million CNY, reflecting a 29.6% increase [2][3]. - The growth in revenue was driven by high-end product sales, which increased by 14.7% to 720 million CNY, while mid-range product sales decreased by 43.6% to 22.7 million CNY [2][3]. - The gross margin for liquor products improved, with a gross margin of 85.2% for Q2 2024, up 3.2 percentage points year-on-year [2][3]. Financial Summary - Revenue projections for 2024-2026 are 5.378 billion CNY, 5.965 billion CNY, and 6.709 billion CNY, respectively, with year-on-year growth rates of 8.6%, 10.9%, and 12.5% [3][7]. - The net profit attributable to the parent company is expected to reach 1.4 billion CNY in 2024, 1.573 billion CNY in 2025, and 1.812 billion CNY in 2026, with growth rates of 10.3%, 12.4%, and 15.2% respectively [3][7]. - The company's price-to-earnings (P/E) ratio is projected to be 12.51 for 2024, decreasing to 9.66 by 2026, indicating an attractive valuation [3][7].