Monalisa(SZ:002918) Tianfeng Securities·2024-08-24 10:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 7.47 CNY per share [6]. Core Views - The company continues to face pressure on its performance, with a significant decline in revenue and net profit for the first half of 2024. Revenue decreased by 19.78% year-on-year to 2.335 billion CNY, while net profit dropped by 49.77% to 83 million CNY [1][4]. - Despite the current challenges, there is optimism regarding the company's long-term growth potential, particularly as it is positioned as a leading player in the ceramic tile industry. The report suggests that if market demand improves, the company could see a significant increase in market share [4]. Financial Performance Summary - For the first half of 2024, the company reported revenues of 2.335 billion CNY, a decrease of 19.78% year-on-year. The net profit attributable to the parent company was 83 million CNY, down 49.77% year-on-year [1]. - The company’s gross margin for the first half of 2024 was 26.8%, a decline of 1.09 percentage points compared to the previous year. The operating cash flow improved significantly, with a net cash flow from operations of 376 million CNY, an increase of 207 million CNY year-on-year [3][9]. Business Segment Analysis - Revenue from different product lines in the first half of 2024 showed varied performance: glazed porcelain tiles at 1.86 billion CNY (-16.2%), non-glazed porcelain tiles at 140 million CNY (-54.8%), and ceramic slabs at 260 million CNY (-18.1%). The gross margins for these segments were 26.9%, 19.9%, and 34.6%, respectively [2]. - The company’s distribution channels are evolving, with the revenue from the distribution channel accounting for 75.6% of total revenue, an increase of 12.3 percentage points year-on-year. This shift indicates a strategic move towards optimizing the channel structure [2]. Cash Flow and Cost Management - The company’s total cash flow from operations for the first half of 2024 was 376 million CNY, reflecting a significant improvement compared to the previous year. The report indicates that there is still room for optimizing expense ratios, as the total expense ratio increased to 21.27% [3][9]. - The report highlights that the company has made substantial provisions for credit impairment losses, which accounted for 97.8% of accounts receivable as of the end of the first half of 2024. This suggests a cautious approach to managing credit risk [2].