By-health(SZ:300146) Huachuang Securities·2024-08-06 23:31Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 13.5 CNY, while the current price is 12.06 CNY [2]. Core Views - The company's performance in H1 2024 was below expectations, with total revenue of 4.613 billion CNY, a year-on-year increase of 17.56%, but a net profit attributable to shareholders of 0.891 billion CNY, a year-on-year decrease of 42.34% [2]. - The decline in revenue is attributed to weak demand and intensified competition, compounded by a high base from the previous year [2]. - The company plans to adjust its strategy and product iterations in H2 2024, but short-term operational pressures are expected to continue [2]. Financial Performance Summary - In H1 2024, the company achieved total revenue of 46.13 billion CNY, with a net profit of 8.91 billion CNY, reflecting a significant decline in profitability [2]. - The sales net profit margin decreased to 19.08%, down 8.91 percentage points year-on-year [2]. - For Q2 2024, total revenue was 19.67 billion CNY, a year-on-year decrease of 20.93%, with a net profit of 1.64 billion CNY, down 68.12% year-on-year [2]. - The company’s gross profit margin in Q2 2024 decreased by 3.6 percentage points to 66.8% due to online price competition and reduced scale effects [2]. Future Outlook - The company is expected to face continued operational pressure in the short term due to external demand weakness and ongoing competition [2]. - Adjustments in marketing strategies and product management are planned to enhance operational efficiency [2]. - The EPS forecast for 2024-2026 has been revised down to 0.68, 0.82, and 0.93 CNY respectively, with corresponding P/E ratios of 18, 15, and 13 [2][3].