Xiamen Jihong Technology (SZ:002803) KAIYUAN SECURITIES·2024-08-18 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's cross-border social e-commerce business is under significant pressure, with a notable decline in revenue and profit, while the packaging business remains relatively stable [1][2] - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 171 million, 257 million, and 349 million yuan respectively, with corresponding EPS of 0.45, 0.67, and 0.91 yuan [1] - The current stock price corresponds to P/E ratios of 23.3, 15.6, and 11.5 for the years 2024, 2025, and 2026 respectively, indicating a reasonable valuation [1] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 2.453 billion yuan, a year-on-year decline of 22.0%, and a net profit of 72 million yuan, down 61.8% [1] - Q2 2024 saw revenue of 1.129 billion yuan, a decrease of 36.1%, and a net profit of 30 million yuan, down 75.2% [1] - The cross-border social e-commerce segment generated revenue of 1.384 billion yuan in H1 2024, down 31.5%, with a net profit of 44 million yuan, down 72.6% [2] - The packaging segment reported revenue of 1.013 billion yuan in H1 2024, an increase of 2.4%, and a net profit of 61 million yuan, up 2.3% [2] Business Segments - The cross-border e-commerce business is facing challenges due to external macro factors, while the packaging business is relatively stable, with growth slowing due to weakened downstream demand and raw material price adjustments [2] - The company is focusing on brand building and expanding sales regions, which has impacted profitability in the short term [2] Future Outlook - The company is leveraging its experience and data in the cross-border social e-commerce sector, with expectations for recovery in growth once macroeconomic conditions stabilize [1][3] - The company is enhancing its digital operations and has launched its own brands, such as SenadaBikes, while also developing a SaaS platform to support its e-commerce initiatives [3]