BAIRUN CORPORATION(002568) 国泰君安·2024-07-31 23:31Investment Rating - The investment rating for the company is "Accumulate" [4] Core Views - The report indicates that the company's performance is under pressure due to weak demand in the first half of 2024, but medium to long-term growth is expected to be driven by the continued expansion of moderately priced refreshing new products [2][3] - The company achieved a revenue of 1.628 billion yuan in H1 2024, a year-on-year decrease of 1.38%, and a net profit attributable to shareholders of 402 million yuan, down 8.36% year-on-year [8] - The report highlights the company's focus on a 3-5-8 degree product matrix, which is expected to enhance brand momentum and drive growth in refreshing products [8] Summary by Sections Financial Performance - The company reported a revenue of 1.628 billion yuan in H1 2024, with a net profit of 402 million yuan, reflecting a decline in both metrics compared to the previous year [8] - The gross margin for H1 2024 was 70.08%, an increase of 4.19 percentage points year-on-year, while the net profit margin was 24.55%, down 1.99 percentage points year-on-year [8] - The company has adjusted its EPS forecasts for 2024-2026 to 0.75, 0.84, and 0.96 yuan respectively, reflecting a year-on-year change of -3.4%, +13.4%, and +13.7% [8] Market Position and Strategy - The company is focusing on enhancing its product matrix with a specific emphasis on refreshing products, which are expected to capture market share and drive future growth [8] - The report notes that the company is reducing discounts in online channels to stabilize pricing, which is seen as a long-term beneficial strategy [8] Valuation - The target price has been adjusted to 22.50 yuan from the previous 26.10 yuan, based on a 30X PE ratio for 2024 [8]