Investment Rating - The investment rating for the company is "Add" [1] Core Views - The company reported a high revenue growth of 40.74% year-on-year in H1 2024, with total revenue reaching 3.721 billion yuan, while net profit attributable to shareholders decreased by 7.73% to 172 million yuan [1] - The company is expanding its product offerings and leveraging new platforms like Temu and TikTok to drive revenue growth [1] - The company is experiencing short-term profit pressure due to rising shipping costs and increased advertising expenses, but margins are expected to improve gradually as operational efficiencies are realized [1][2] Financial Performance Summary - For H1 2024, the company achieved revenue of 3.721 billion yuan, a year-on-year increase of 40.74%, while net profit attributable to shareholders was 172 million yuan, down 7.73% [1] - In Q2 2024, revenue was 1.879 billion yuan, reflecting a year-on-year growth of 36.55%, but net profit dropped significantly by 50.40% [1] - The company’s gross margin for H1 2024 was 34.92%, a decrease of 1.47 percentage points year-on-year, while the net profit margin was 4.61%, down 2.42 percentage points [1] Market Data Summary - The company’s revenue growth is driven by strong performance in the furniture and home goods segments, with year-on-year increases of 39.42% and 50.21% respectively [1] - The European and North American markets contributed significantly to revenue growth, with year-on-year increases of 41.22% and 41.12% respectively [1] - The B2C channel remains a key revenue driver, with Amazon accounting for 69.10% of total revenue in H1 2024, showing a year-on-year growth of 42.68% [1] Future Earnings Forecast - The company is projected to achieve revenues of 6.074 billion yuan in 2024, with a year-on-year growth of 24.3%, and net profit is expected to reach 413 million yuan, reflecting a growth of 6.7% [2] - For 2025, revenue is forecasted to be 7.550 billion yuan, with a net profit of 440 million yuan, indicating a growth of 29.5% [2] - The gross margin is expected to improve slightly to 36.9% in 2024 and stabilize at 37.0% in subsequent years [2]
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