King's Luck(SH:603369) Guoyuan Securities·2024-08-20 09:30Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company demonstrated strong operational resilience with continued growth both domestically and externally, achieving a total revenue of 7.305 billion yuan in H1 2024, representing a year-on-year increase of 22.35% [2]. - The growth was primarily driven by products priced over 100 yuan, which accounted for 94.67% of the main business revenue, showing a slight increase of 0.76 percentage points year-on-year [2]. - The company’s net profit for H1 2024 reached 2.461 billion yuan, up 20.08% year-on-year, with a net profit margin of 33.70% [3]. Summary by Sections Revenue and Growth - In H1 2024, the company achieved total revenue of 73.05 billion yuan, with a net profit of 24.61 billion yuan. In Q2 2024, revenue was 26.34 billion yuan, reflecting a growth of 21.52% year-on-year [2]. - Revenue from various product categories in H1 2024 was as follows: Special A+ category: 4.654 billion yuan (+21.91%), Special A category: 2.216 billion yuan (+26.05%), A category: 258 million yuan (+14.32%), B category: 82 million yuan (-2.32%), C category: 44 million yuan (-8.14%) [2]. - Revenue growth was consistent across regions, with notable increases in the Suzhong region (32.91%) and the province outside (36.39%) [2]. Profitability and Cost Management - The company maintained stable profitability with a slight decrease in gross margin to 73.79% in H1 2024, down 0.69 percentage points year-on-year. The net profit margin was 33.70%, down 0.63 percentage points [3]. - The expense ratios for sales, management, R&D, and financial costs were optimized, with the sales expense ratio decreasing by 1.44 percentage points year-on-year [3]. Financial Forecast - The company is projected to achieve net profits of 3.824 billion yuan, 4.633 billion yuan, and 5.604 billion yuan for the years 2024, 2025, and 2026, respectively, with growth rates of 21.94%, 21.16%, and 20.96% [4][5]. - The corresponding price-to-earnings ratios (P/E) for these years are estimated at 14, 11, and 9 times, respectively, based on a market capitalization of 51.7 billion yuan [4].