万联证券：万联晨会-20240824

Core Viewpoints - The report indicates that the domestic market is experiencing growth in sales, but rising financial costs are dragging down profitability [6][7] - The company achieved a revenue of 2.556 billion yuan, representing a year-on-year increase of 10.14%, while the net profit attributable to shareholders was 266 million yuan, up 4.51% year-on-year [6][7] - The gross profit margin slightly increased to 20.84%, but the rise in financial expense ratio led to a slight decline in overall profitability, with the net profit margin decreasing by 0.68 percentage points to 10.88% [8] Market Review - On Thursday, the three major A-share indices collectively fell, with the Shanghai Composite Index down 0.27%, the Shenzhen Component Index down 0.82%, and the ChiNext Index down 0.76% [4] - The total trading volume in the Shanghai and Shenzhen markets was 549 billion yuan [4] - The banking, public utilities, and textile sectors led the gains, while beauty care, media, and social services sectors saw declines [4] Important News - The China Securities Association is seeking industry opinions on amending the "Management Rules for Offline Investors in Initial Public Offerings," which includes new performance assessment indicators for offline institutional investors [5] - From January to July, China's non-financial direct investment abroad reached 83.55 billion USD, a year-on-year increase of 16.2%, with investments in Belt and Road countries amounting to 17.94 billion USD, up 7.7% [5] Company Performance - The company reported a revenue of 1.457 billion yuan in Q2 2024, reflecting an 8.44% year-on-year increase, while the net profit for the same period was 170 million yuan, up 3.38% year-on-year [6][7] - The company’s sales of fine wool yarn and cashmere products saw revenue growth, while revenue from wool tops declined [8] - The domestic and international markets performed better than the overall market environment, with domestic revenue increasing by 9.45% and international revenue by 11.48% [8] Profit Forecast and Investment Recommendations - The company is expected to maintain its position as a leading player in the fine wool industry, with adjusted profit forecasts for 2024-2026 being 426 million, 468 million, and 534 million yuan respectively [8] - The report maintains a "buy" rating based on the company's growth potential despite a weak domestic and international consumption environment [8]