Elegant(SH:603221) Soochow Securities·2024-08-28 11:00Investment Rating - The report maintains an "Accumulate" rating for the company [1][3] Core Views - The company reported a revenue of 619 million yuan for H1 2024, representing a year-on-year increase of 40.86%, with a net profit attributable to shareholders of 72.3 million yuan, up 8516.09% year-on-year [2] - Q2 revenue growth slowed due to increased shipping costs, with Q2 revenue at 288 million yuan, a year-on-year increase of 3.25% [2] - The gross margin significantly improved, with Q1 and Q2 gross margins at 24.08% and 24.03%, respectively, reflecting increases of 14.33 and 10.27 percentage points year-on-year [2] - The North American subsidiary reduced losses year-on-year, with revenue of 62.41 million yuan in H1 2024 compared to 8.62 million yuan in H1 2023 [2] Financial Forecasts and Valuation - The company has established stable partnerships with well-known international flooring traders and brands, and is included in the supply chain of major home improvement retailers like Home Depot [3] - The net profit forecasts for 2024-2026 have been slightly adjusted to 141 million, 188 million, and 228 million yuan, respectively, with corresponding P/E ratios of 15X, 11X, and 9X [3]