Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 55.77 [4] Core Views - The company's H1 2024 performance met expectations, driven by the strong performance of its main brand, Han Shu, on Douyin, which boosted overall channel momentum [4] - The company's gross margin continued to improve, reaching 76.5% in H1 2024, up 7.5 percentage points year-on-year and 2.5 percentage points compared to H2 2023 [4] - The company's revenue and net profit attributable to shareholders in H1 2024 were RMB 3.502 billion and RMB 401 million, respectively, representing year-on-year growth of 121% and 297% [4] - The company's net profit margin in H1 2024 was 11.8%, up 5.4 percentage points year-on-year, driven by the improvement in gross margin [4] Financial Performance - In H1 2024, the company's main brand, Han Shu, achieved revenue of RMB 2.927 billion, up 84% year-on-year, while its sub-brands, Yi Ye Zi and Red Elephant, reported revenues of RMB 125 million and RMB 174 million, down 39% and 8% year-on-year, respectively [4] - Han Shu's GMV on Douyin in H1 2024 reached RMB 3.44 billion, exceeding the full-year 2023 figure, with GMV growth rates on Tmall and JD flagship stores nearing 200% and over 400%, respectively [4] - The company's sales, management, and R&D expense ratios in H1 2024 were 57.6%, 3.2%, and 2.2%, respectively, with the sales expense ratio increasing by 4 percentage points year-on-year due to increased online advertising and brand promotion expenses [4] Strategic Development - The company is advancing its multi-brand and multi-category strategy, with plans to establish a joint venture, Shanghai Yi Ye Zi Cosmetics Co., Ltd., in collaboration with Hangzhou Mangkeng, to further develop the Yi Ye Zi brand [4] - The company has proposed six strategic focuses for 2024: organizational development, R&D, AI and digitalization, marketing, intelligent production, and common development, aiming to expand its brand and product portfolio across six major sectors [4] Market Data - The company's current share price is HKD 33.25, with a 52-week price range of HKD 20.05 to HKD 54.75 [5] - The company's current market capitalization is HKD 13.234 billion, with 398 million shares outstanding [5]
上美股份2024半年报点评：业绩符合预期，共性化发展推进品牌矩阵建设