Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the next six months [3]. Core Views - The company reported a revenue of 316 million HKD for H1 2024, a decrease of 9.68% year-on-year, and a net profit of 27 million HKD, down 29.47% year-on-year. The interim dividend declared is 0.02 HKD per share, totaling 14.89 million HKD [1]. - The revenue breakdown shows that experience marketing accounted for 81.4% of total revenue, with a decline of 8.1% year-on-year, while digital marketing and promotion saw a 20.6% decrease, contributing 15.5% to total revenue. IP expansion, however, grew by 16.5%, making up 3.1% of total revenue [1]. - The gross margin improved by 2.7 percentage points to 32.7%, while the overall net profit margin decreased by 2.2 percentage points to 9.5% [1]. - The long-term outlook is positive due to the increasing focus of international brands on the domestic market and the rise of local brands, which positions the company favorably as a data-driven marketing group [1]. Financial Summary - For the fiscal years 2024 to 2026, the company is projected to achieve revenues of 947 million HKD, 1.083 billion HKD, and 1.214 billion HKD, respectively, with net profits of 110 million HKD, 124 million HKD, and 137 million HKD [2]. - The projected P/E ratios for 2024, 2025, and 2026 are 6.6, 5.8, and 5.3, respectively, indicating a potentially undervalued stock [2]. - The company’s return on equity (ROE) is expected to decline from 25.4% in 2024 to 19.7% in 2026, reflecting a gradual decrease in profitability [2].
艾德韦宣集团：受市场影响收入承压，期待旺季表现