Jiangshan Oupai(SH:603208) Tianfeng Securities·2024-08-21 09:30Investment Rating - The investment rating for Jiangshan Oupai (603208) is "Buy" with a maintained rating [1]. Core Views - The company is experiencing channel expansion against the trend, with continuous optimization of its structure [1]. - Despite a challenging market environment, the company's profitability remains relatively stable, and it is actively pursuing cost reduction measures [1]. - The company is focusing on expanding its overseas market and optimizing its engineering channel structure [1]. Financial Performance Summary - In Q2 2024, the revenue was 820 million yuan, a year-on-year decrease of 11.28%, and the net profit attributable to the parent company was 76 million yuan, down 8.71% year-on-year [1]. - For the first half of 2024, the total revenue was 1.442 billion yuan, a decrease of 9.95% year-on-year, with a net profit of 105 million yuan, down 26.06% year-on-year [1]. - The revenue from the panel-pressed doors in H1 2024 was 808 million yuan, down 13.73% year-on-year, while the revenue from solid wood composite doors was 253 million yuan, down 23.52% year-on-year [1]. Channel and Market Strategy - The company has rapidly expanded its dealer network, with the number of franchise dealers reaching 52,000 by mid-2024, an increase of 16,000 from the beginning of the year [1]. - The company is optimizing its engineering channel structure and has established strategic partnerships with major engineering clients [1]. - The company is focusing on mainstream regions and developing overseas markets, particularly in the Middle East and North America [1]. Profitability and Cost Management - The gross profit margin for H1 2024 was 22.23%, a decrease of 1.27 percentage points year-on-year [1]. - The company is implementing cost reduction measures, including centralized procurement of production materials and optimizing production line layouts [1]. - The company expects to maintain controllable cash flow risks while expanding its agency channel development [1]. Financial Forecast - The company has adjusted its profit forecast, expecting net profits attributable to the parent company to be 300 million yuan, 330 million yuan, and 370 million yuan for 2024, 2025, and 2026, respectively [1]. - The corresponding price-to-earnings ratios (PE) are projected to be 10, 9, and 8 times for the respective years [1].