ATRenew(US:RERE) Guohai Securities·2024-08-26 13:48Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has shown strong revenue growth, with Q2 2024 total revenue reaching 3.78 billion RMB, a year-on-year increase of 27.4% [3][4] - Non-GAAP operating profit for Q2 2024 was 94.07 million RMB, up 81.0% year-on-year, marking the eighth consecutive quarter of positive Non-GAAP operating profit [3][4] - The company expects Q3 2024 revenue to be between 3.97 billion and 4.07 billion RMB, representing a year-on-year growth of 21.9% to 25.0% [3] Revenue Breakdown - In Q2 2024, the company's 1P product revenue was 3.40 billion RMB, a 29.0% increase year-on-year, driven by growth in second-hand electronic product sales [4] - 3P service revenue reached 370 million RMB, a 14.6% increase year-on-year, attributed to the growth of services like "拍机堂" and multi-category business services [4] Financial Performance - The company's gross margin for Q2 2024 was 20.8%, a decrease of 0.7 percentage points from the same period last year [3] - Non-GAAP net profit for Q2 2024 was 80.49 million RMB, up 121.2% year-on-year, with a Non-GAAP net profit margin of 2.1%, an increase of 0.9 percentage points year-on-year [3][4] Future Projections - The company forecasts revenues of 16.4 billion, 20.5 billion, and 24.8 billion RMB for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 27%, 24%, and 21% [5][6] - Non-GAAP net profits are projected to be 400 million, 610 million, and 850 million RMB for the same years, with growth rates of 76%, 55%, and 38% respectively [5][6]