Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 24.00, indicating a potential upside of 38.2% from the current closing price of HKD 17.36 [1][7]. Core Insights - The company's mid-2024 performance met expectations, with an anticipated revenue growth of 8% year-on-year to RMB 14.7 billion and an adjusted net profit of RMB 730 million, corresponding to a net profit margin of 5% [1][5]. - The report highlights that while consumer demand for cost-effectiveness is pressuring average transaction values, the trend of improving profit margins remains intact. The company is focusing on expanding its factory store network and optimizing its product mix to increase the share of high-margin proprietary and self-controlled products, which currently account for approximately 70% of sales [1][4]. - The company has made significant progress in its store expansion, with a total of 6,311 factory stores as of June 30, 2024, an increase of 402 stores from the end of 2023, with over 60% of new stores located in lower-tier cities [1][5]. Financial Summary - For the first half of 2024, the company reported revenue of RMB 7.1 billion, a year-on-year increase of 9.3%, with a gross margin improvement of 1.7 percentage points to 26% [1][5]. - The adjusted net profit for the first half of 2024 was RMB 360 million, reflecting a 67% year-on-year increase, maintaining a net profit margin of 5% [1][5]. - The report projects revenue growth for 2024E at RMB 14.7 billion, with gross profit expected to reach RMB 3.9 billion, resulting in a gross margin of 26.4% [4][8].
途虎-W：2024年中期业绩符合预期，供应链能力提升下利润率持续提升