Investment Rating - The investment rating for the company is "Outperform the Market" [5][10]. Core Views - The company achieved a revenue growth of 7.3% in the first half of 2024, with a total revenue of 1.6 billion yuan and a net profit of 280 million yuan, reflecting a year-on-year increase of 3.6% [1][2]. - The company is undergoing a channel transformation, optimizing inventory turnover, and has established a joint venture with Descente to expand into the sportswear segment [1][2]. - Despite a challenging consumption environment, the company maintains a high dividend payout ratio of 72% and aims for a retail growth target of 10% for the year [1][2]. Summary by Sections Financial Performance - Revenue for the first half of 2024 reached 1.6 billion yuan, with a main series revenue of 1.21 billion yuan and a light business series revenue of 390 million yuan, showing growth rates of 4.5% and 17.3% respectively [1][2]. - The gross margin decreased by 1.8 percentage points to 50.0%, influenced by channel reforms and product mix changes [1][2]. - The company plans to distribute an interim dividend of 0.13 HKD per share and a special dividend of 0.05 HKD per share [1]. Growth Prospects - The management has adjusted the retail growth target for 2024 from 15% to 10%, anticipating better performance in the second half of the year [1][2]. - The company aims to open 50-100 new stores and complete renovations for 400 stores to enhance brand image [1][2]. - Future growth is expected in the new retail and light business segments, with a projected net profit of 570 million yuan for 2024, reflecting a 7% increase [2][8]. Valuation - The target price has been slightly adjusted to 4.6-5.2 HKD, corresponding to a price-to-earnings ratio of 9-10x for 2024 [2][8]. - The company’s financial metrics indicate a stable outlook, with projected earnings per share of 0.47 yuan for 2024 and a net profit margin of 14.6% [9][12].
中国利郎：上半年收入增长7%，收购万星威布局运动赛道