ROBAM(SZ:002508) Guolian Securities·2024-08-28 06:03Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company's revenue is under pressure due to a decline in real estate completions and a weak consumer environment. The company is actively promoting the growth of its sub-brands targeting mass consumption. However, the increase in low-margin sub-brands has led to a decline in overall profitability. Future demand in the kitchen appliance sector may be stimulated by the implementation of the old-for-new policy, and the company has a notable cash dividend payout ratio of 62% [3][10][16]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 4.729 billion, a year-on-year decrease of 4.16%. The net profit attributable to the parent company was 759 million, down 8.48% year-on-year. The non-recurring net profit was 658 million, down 11.91% year-on-year. In Q2 2024, revenue was 2.492 billion, a decline of 9.63%, with a net profit of 361 million, down 18.15% year-on-year [10][16]. Revenue Breakdown - The revenue decline was attributed to a drop in real estate completions and a weak consumption environment. Traditional categories like range hoods and gas stoves saw relatively stable revenues, with declines of 3% and 1% respectively. In contrast, optional categories faced greater pressure. The sub-brand targeting mass consumption saw a revenue increase of 40% year-on-year [10][15]. Profitability and Cost Structure - The company's gross margin decreased by 3.1 percentage points in H1 and 2.4 percentage points in Q2, primarily due to the increased revenue share from lower-margin sub-brands. The company managed to control marketing expenses, but the decline in revenue led to an increase in management and R&D expense ratios [10][16]. Dividend Policy and Future Outlook - The company maintained a high dividend payout, distributing 472 million in cash dividends, which accounted for 62% of H1 net profit. The implementation of the old-for-new policy is expected to boost demand in the kitchen appliance sector, benefiting the company's operations. The company is projected to achieve revenue growth of 2% in 2024, followed by 8% in 2025 and 2026 [10][11][16].