Peacebird(SH:603877) Orient Securities·2024-08-23 11:38Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.4 yuan based on a 16x PE valuation for 2024 [2][4]. Core Insights - The company reported a revenue of 3.15 billion yuan for the first half of 2024, a year-on-year decline of 12.7%, and a net profit attributable to shareholders of 170 million yuan, down 31.7% year-on-year [1]. - The retail environment remains sluggish, leading to significant declines in direct sales channels, with revenue from direct, franchise, and e-commerce channels down 19.2%, 5.2%, and 8.1% respectively [1]. - The company is actively managing inventory levels, achieving a reduction in inventory turnover days to 188 days, down 44 days year-on-year, indicating improved inventory management [1]. Financial Performance Summary - For the first half of 2024, the company experienced a gross margin decline of 2.1 percentage points to 56.2% [1]. - The company’s net profit margin for the first half of 2024 was 5.4%, a decrease of 1.5 percentage points year-on-year [1]. - The forecast for earnings per share for 2024-2026 is adjusted to 0.9, 1.01, and 1.17 yuan respectively, reflecting a downward revision from previous estimates [4][5]. Business Strategy and Outlook - The company is focusing on enhancing brand strength and improving operational quality despite short-term performance pressures, with expectations for gradual improvement as retail conditions recover [1]. - The report suggests that the company's high proportion of direct sales channels may provide significant upside potential for future performance [1].