锦泓集团：店效实现正增长，云锦翻倍

Investment Rating - The investment rating for the company is "Buy" with a target price of 24.18 billion [1] Core Insights - The company reported a revenue of 2.078 billion, a net profit attributable to the parent of 148 million, and a non-recurring net profit of 140 million for H1 2024, showing a year-on-year decline in revenue of 1.59% but an increase in net profit of 3.08% [1][2] - The decline in revenue is attributed to the impact of Douyin's strategy adjustments on online sales and reduced foot traffic offline, while profit performance improved due to a decrease in financial expense ratio [1][2] - The company announced a share buyback plan at a price not exceeding 9.95 yuan per share, with 290,000 shares repurchased by July 31, 2024 [1] Financial Performance Summary - For H1 2024, the company achieved a revenue of 20.78 billion, a net profit of 1.48 billion, and operating cash flow of 3.61 billion, with respective year-on-year changes of -1.59%, +3.08%, and -4.43% [1] - In Q2 2024, the revenue was 9.25 billion, with a net profit of 320 million, reflecting a year-on-year decline of 2.03% in revenue and 22.39% in net profit [1][2] - The company’s gross margin for H1 2024 was 69.42%, an increase of 0.46 percentage points year-on-year, with brand-specific gross margins of 75.51% for VG, 76.21% for Yun Jin, and 67.58% for TW [2][3] Brand Performance - TW's revenue was 16.22 billion, showing a slight decline of 0.25% year-on-year, while the number of TW franchise stores increased by 69 [2] - VG's revenue decreased by 12.55% to 3.97 billion, primarily due to a downturn in the high-end women's wear segment [2] - Yun Jin's revenue and net profit saw significant growth, with increases of 115% and 134% respectively, benefiting from the rising trend of new Chinese style [2] Store Efficiency and Market Trends - The total number of stores decreased by 87 to 1260, with a net reduction in direct stores but an increase in franchise stores [2] - The average sales per store for TW and VG improved, with TW achieving 97,000 and VG achieving 224,000 [2] - The company is expected to continue benefiting from the new Chinese style trend in the second half of the year, which may contribute to profit growth [4]