SYG(SZ:300740) KAIYUAN SECURITIES·2024-07-31 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [6][33]. Core Insights - The company experienced a decline in profit in H1 2024 due to increased spending on marketing and brand promotion, but future effects are expected to be positive [5][16]. - The company is focusing on enhancing its multi-brand system and leveraging high-margin EDB products to drive performance growth [16]. - Despite a decrease in net profit, the company is projected to see a rebound in earnings growth in the coming years, with expected net profits of 3.4 billion, 4.1 billion, and 5 billion for 2024, 2025, and 2026 respectively, reflecting year-on-year growth of 16.4%, 19.9%, and 21.4% [16]. Financial Summary - In H1 2024, the company achieved revenue of 2.29 billion yuan, a year-on-year increase of 0.14%, while net profit was 106 million yuan, down 25.7% year-on-year [16]. - The gross margin for H1 2024 was 61.5%, an increase of 4.56 percentage points year-on-year, while the net margin was 4.8%, a decrease of 1.63 percentage points year-on-year [16]. - The company’s revenue from the EDB subsidiary grew by 28.7% year-on-year, indicating strong brand performance [16]. Financial Projections - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.88 yuan, 1.06 yuan, and 1.28 yuan respectively [17]. - The price-to-earnings (P/E) ratios for the same years are expected to be 14.2, 11.9, and 9.8 [17]. - The company’s revenue is projected to grow from 4.65 billion yuan in 2024 to 5.29 billion yuan in 2026, with corresponding year-on-year growth rates of 3.5%, 6.9%, and 6.3% [17].