Zhejiang Meorient Commerce & Exhibition (SZ:300795) Minsheng Securities·2024-08-07 23:30Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 15.03 yuan [4]. Core Views - The company's revenue for the first half of 2024 was 260 million yuan, a year-on-year decrease of 26.39%, and the net profit attributable to shareholders was 40.72 million yuan, down 46.56% year-on-year [2]. - The decline in revenue and net profit is attributed to changes in the scheduling of exhibitions compared to the previous year, with fewer self-organized exhibitions held in 2024 [2]. - The company is focusing on a transformation towards professional exhibitions, which is expected to support long-term growth, with plans for nine exhibitions in Q3/Q4 across various countries [2]. - The company has increased its sales expense ratio to 25.6% in H1 2024 from 17.99% in the same period last year, indicating higher costs associated with talent acquisition and lower exhibition scale [2]. - The company has initiated a stock incentive plan to motivate employees, which is expected to drive long-term growth [2]. Financial Summary - Revenue is projected to grow from 835 million yuan in 2023 to 1,066 million yuan in 2024, with a growth rate of 27.7% [3]. - Net profit attributable to shareholders is expected to increase from 188 million yuan in 2023 to 246 million yuan in 2024, reflecting a growth rate of 30.8% [3]. - The earnings per share (EPS) is forecasted to rise from 0.82 yuan in 2023 to 1.07 yuan in 2024, with a price-to-earnings (PE) ratio decreasing from 18 to 14 [3][5]. - The company’s total assets are projected to grow from 868 million yuan in 2023 to 1,139 million yuan in 2024, with total liabilities increasing correspondingly [5][6].