King's Luck(SH:603369) EBSCN·2024-08-19 06:03Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company demonstrated strong operational resilience with a total revenue of 7.305 billion yuan in H1 2024, reflecting a year-on-year growth of 22.35%, and a net profit of 2.461 billion yuan, up 20.08% year-on-year [2][3] - The company is expected to achieve its annual revenue target of 12.2 billion yuan, supported by robust consumer demand in the domestic market [3] Revenue Performance - In Q2 2024, the company reported total revenue of 2.634 billion yuan, a year-on-year increase of 21.52%, with net profit reaching 929 million yuan, up 16.86% year-on-year [2] - Revenue from specific product categories in Q2 2024 showed strong growth: Special A+ products at 1.682 billion yuan (up 21.07%), Special A products at 810 million yuan (up 25.30%), and A products at 80 million yuan (up 10.04%) [2] - Regional performance in Q2 2024 included revenue from Jiangsu province markets: Huai'an at 438 million yuan (up 19.47%), Nanjing at 642 million yuan (up 14.07%), and Suzhou at 346 million yuan (up 19.60%) [2] Profitability Metrics - The gross margin for Q2 2024 was 73.02%, with a slight year-on-year increase of 0.15 percentage points [3] - The net profit margin for Q2 2024 was 35.27%, down 1.4 percentage points year-on-year, influenced by investment income and fair value changes [3] - The company reported a cash flow from operating activities of 245 million yuan in Q2 2024, a significant improvement from a negative cash flow of 99 million yuan in the same period last year [3] Earnings Forecast and Valuation - The forecast for net profit for 2024-2026 is set at 3.961 billion yuan, 4.865 billion yuan, and 5.722 billion yuan respectively, translating to EPS of 3.16 yuan, 3.88 yuan, and 4.56 yuan [3] - The current stock price corresponds to a P/E ratio of 14, 11, and 9 for the years 2024, 2025, and 2026 respectively [3]