Buydeem Group(300824) 天风证券·2024-08-16 06:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.78 CNY per share, indicating a potential upside in the next six months [3]. Core Views - The company reported a slight increase in revenue for H1 2024, achieving 322 million CNY, up 0.22% year-on-year, but a decline in net profit by 15.19% to 32 million CNY [1]. - The company is focusing on expanding both domestic and international markets, with a notable recovery in domestic sales growth in Q2 2024 and strong performance in overseas sales [1]. - The gross margin for H1 2024 was 48.96%, a decrease of 1.83 percentage points year-on-year, while the net margin was 9.91%, down 1.8 percentage points [1]. - The company is increasing its investment in marketing, product development, and talent acquisition, which is expected to impact overall profitability [1]. Summary by Sections Financial Performance - H1 2024 revenue was 322 million CNY, with Q2 revenue at 163 million CNY, reflecting a 7.83% increase year-on-year [1]. - The gross profit margin for H1 2024 was 48.96%, with a net profit margin of 9.91% [1]. - The company’s net cash flow from operating activities for H1 2024 was 7 million CNY, a significant decrease of 86.45% year-on-year [1]. Revenue Breakdown - For H1 2024, the company's own brand revenue decreased by 6.5% while OEM/ODM revenue increased by 31.91% [1]. - In Q2 2024, the own brand revenue showed a slight recovery with a 2.6% increase, while OEM/ODM revenue continued to grow by 31.3% [1]. Cost Structure - The company’s selling expenses increased due to higher salaries for sales personnel and increased logistics costs, while management expenses decreased due to lower salaries for management staff [1]. - The financial expense ratio increased due to reduced fluctuations in exchange rates [1]. Future Outlook - The company plans to enhance operational efficiency and cost reduction strategies to prepare for a potential recovery in consumer demand [1]. - The projected net profits for 2024-2026 are estimated at 76 million CNY, 88 million CNY, and 102 million CNY respectively, with corresponding dynamic valuations of 33.3x, 28.8x, and 25x [1].