Investment Rating - The report maintains a rating of "Buy" for the company [2][5]. Core Insights - The company has shown strong performance with a revenue of 1.365 billion yuan in H1 2024, representing a growth of 38.4%, and a net profit of 107 million yuan, up by 15.1% [5]. - The adjusted net profit reached 148 million yuan, marking a significant increase of 45.3% [5]. - The gross margin improved to 29.4%, an increase of 0.7 percentage points, while the adjusted profit margin rose to 10.8%, up by 0.5 percentage points [5]. - The company forecasts adjusted net profits of 399 million, 519 million, and 670 million yuan for 2024, 2025, and 2026, respectively, indicating year-on-year growth rates of 31%, 30%, and 29% [5]. - The target market capitalization is set at 12 billion yuan, with a target price of 48.97 yuan (53.52 HKD) based on a PE ratio of 30X for 2024 [5]. Summary by Sections Performance Overview - The company added 420,000 new customers in H1 2024, a growth of 21.1%, bringing the total customer base to 3.957 million [5]. - The number of customer visits reached 2.383 million, an increase of 31.9%, with a customer retention rate of 69.5%, up by 2.2 percentage points [5]. - Average spending per visit increased to 573 yuan, reflecting a growth of 4.9% [5]. - Membership numbers grew by 49.3% to 261,000, with member visits increasing by 51.1% to 938,000 [5]. Expansion and Market Share - The company is expanding its market presence through both self-built and acquired branches, adding 16 new locations (4 self-built and 12 acquired) [5]. - The company has entered new cities including Singapore, Changsha, Xuzhou, and Changshu, operating a total of 74 stores across 20 cities [5]. - The company has established partnerships with 26 medical alliances, enhancing its doctor resources with over 39,000 practicing physicians [5]. Financial Projections - Revenue projections for the next three years are as follows: 3.029 billion yuan for 2024, 3.925 billion yuan for 2025, and 5.033 billion yuan for 2026, with respective growth rates of 30.2%, 29.6%, and 28.2% [7]. - The adjusted net profit is expected to grow significantly, with projections of 399 million yuan for 2024, 519 million yuan for 2025, and 670 million yuan for 2026 [7].
固生堂：2024年中报点评：扩张稳步推进，高增长有望延续