HEILAN HOME(SH:600398)2024-08-20 10:08Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [6]. Core Views - The company reported a revenue of 11.37 billion yuan for H1 2024, reflecting a year-on-year increase of 1.5%, while the net profit attributable to shareholders decreased by 2.5% to 1.64 billion yuan [6][7]. - A mid-term dividend of 1.1 billion yuan was announced, with a cash dividend ratio of 67.5%, resulting in a dividend per share of 0.23 yuan, corresponding to a dividend yield of 3.7% based on the current stock price [6]. - The company is positioned as a high-quality national apparel brand, aligning with the current trend of pragmatic consumerism, and is considered undervalued with high dividends [6]. Financial Summary - For H1 2024, the comprehensive gross margin was 45.2%, with an increase of 0.1 percentage points year-on-year, while the expense ratio rose to 25.4%, up 1.2 percentage points year-on-year [6]. - The main brand, Hai Lan, generated revenue of 8.92 billion yuan in H1 2024, a year-on-year increase of 3.2%, with a gross margin of 46.1% [6]. - Online sales reached 2.21 billion yuan, a significant increase of 47% year-on-year, while offline sales were 8.70 billion yuan, reflecting a decline of 6.5% [6]. Future Projections - The company expects net profits for 2024 to be 2.79 billion yuan, with projected growth rates of 10.1% and 10.9% for 2025 and 2026, respectively [7][10]. - The report anticipates a target market capitalization of 39.2 billion yuan for 2024, representing a potential upside of 31% from the current market value [6].