SAINT ANGELO(SZ:002154) Soochow Securities·2024-08-22 18:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a slight increase in revenue for H1 2024, with total revenue at 2.479 billion yuan, a year-on-year increase of 0.36%. However, the net profit attributable to the parent company decreased by 15.6% to 344 million yuan due to insufficient domestic consumer confidence and extreme weather conditions impacting performance in Q2 [2][3] - The company continues to focus on high-quality sustainable development, with a notable increase in gross margin by 1.46 percentage points to 67.0% in H1 2024, despite rising expense ratios leading to a decline in net profit margin [3] - The company has adjusted its net profit forecasts for 2024-2026 downwards due to ongoing weak domestic consumption, with new estimates of 654 million yuan, 742 million yuan, and 831 million yuan respectively, corresponding to P/E ratios of 8, 7, and 6 times [3] Revenue and Profit Analysis - For H1 2024, the revenue breakdown by brand shows a decline for the main brand Baoshiniao by 3.7%, while Le Fei Ye experienced a significant growth of 32.2% [2] - The revenue contribution from different channels indicates a decline in online and direct sales, while franchise and group purchase revenues saw slight increases [2] Financial Metrics - The company’s gross margin improved, but the increase in expense ratios led to a decrease in net profit margin, which fell by 2.62 percentage points to 13.87% in H1 2024 [3] - The company’s cash flow from operating activities decreased by 59% year-on-year to 14,000 yuan, primarily due to reduced government subsidies and increased operational expenses [3][10] - The company’s total assets are projected to grow from 7.055 billion yuan in 2023 to 10.494 billion yuan by 2026, with a steady increase in equity attributable to shareholders [9]