aisidi(002416) Tianfeng Securities·2024-08-28 12:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within the next six months [5]. Core Insights - The company reported a significant year-on-year increase in net profit for the first half of 2024, achieving a net profit of 395 million yuan, up 23.92% compared to the previous year, despite a decline in revenue [1][2]. - The company's digital distribution and retail businesses have shown improved profitability, attributed to enhanced operational efficiency and a focus on digital transformation [2]. - The company is expanding its self-owned brands and exploring overseas markets, which are expected to contribute to future growth [3]. Financial Performance Summary - For 2024H1, the company achieved operating revenue of 38.847 billion yuan, a decrease of 16.54% year-on-year, while the net profit attributable to shareholders was 395 million yuan, reflecting a 23.92% increase [1]. - The digital distribution segment generated revenue of 24.964 billion yuan, down 17.65% year-on-year, but with a gross margin improvement of 1.23 percentage points [2]. - The digital retail segment reported revenue of 13.724 billion yuan, a decline of 14.63% year-on-year, with a gross margin increase of 0.34 percentage points [2]. Future Projections - The company forecasts operating revenues of 99.456 billion yuan, 107.861 billion yuan, and 116.088 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 709.90 million yuan, 821.10 million yuan, and 973.89 million yuan for the same years [3][4]. - The expected price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 16.81x, 14.53x, and 12.25x respectively [3]. Operational Efficiency - The company has implemented a "streamlined operations" strategy, resulting in a significant reduction in asset impairment losses by 88.75% year-on-year, which has enhanced asset vitality [2]. - The number of authorized Apple retail outlets and self-operated stores has increased, contributing to a robust distribution network that supports future revenue growth [2]. Market Position - The company is positioned as a key strategic partner for the Honor brand, which is expected to benefit from the upcoming IPO, potentially enhancing dividend income and shareholder value [3]. - The company has established a comprehensive distribution network with over 100,000 stores across various channels, reinforcing its market presence [2].