Investment Rating - The report maintains an "Outperform" rating for the company, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark by more than 10% [8][20][27]. Core Insights - The Traditional Chinese Medicine (TCM) sector is experiencing high prosperity, with the company achieving a revenue of CNY 1.37 billion in the first half of 2024, representing a growth of 38.4% year-on-year, driven primarily by increased outpatient volume [17][19]. - The company added 16 new stores in the first half of 2024, significantly accelerating its expansion, particularly in new first-tier cities such as Jiangsu, Zhejiang, and Shanghai [18][20]. - Profitability metrics show improvement, with a net profit of CNY 0.11 billion (+15.1%) and an adjusted net profit of CNY 0.15 billion (+45.3%) in the first half of 2024, alongside a gross profit margin of 29.4% [19][20]. Revenue and Profit Forecast - The revenue forecast for 2024 and 2025 has been slightly increased to CNY 3.067 billion and CNY 3.882 billion, respectively, reflecting a year-on-year growth of 32.0% and 26.6% [8][20]. - Adjusted net profit is projected to be CNY 0.415 billion for 2024 and CNY 0.539 billion for 2025, with year-on-year growth rates of 36.1% and 30.1% [8][20]. Financial Metrics - The company reported a gross profit margin of 29.4% in the first half of 2024, with a net profit margin of 10.8% [19][20]. - The average customer price increased to CNY 573 (+4.9%), attributed to the company's growth in first-tier cities [17][19]. Shareholder Returns - The company plans to distribute an interim dividend of HKD 0.13 per share, totaling approximately CNY 28.89 million, and has repurchased 2.8 million shares, accounting for 1.1% of total share capital [19][20].
固生堂：中医诊疗维持高景气度，24H1公司收入强劲增长，外延速度加快