DEHUA TB(SZ:002043) Minsheng Securities·2024-08-28 12:46Investment Rating - The report maintains a "Recommended" rating for the company [2][7]. Core Views - The company achieved a revenue of 3.908 billion yuan in H1 2024, representing a year-on-year increase of 19.77%. The net profit attributable to shareholders was 244 million yuan, down 15.43% year-on-year, while the net profit excluding non-recurring items was 235 million yuan, up 7.47% year-on-year [3]. - The company is focusing on multi-channel operations, including rural areas, online platforms, and small businesses, with a total of 4,322 decoration material stores by the end of H1 2024, an increase of 557 stores from the beginning of the year [4]. - The company is actively expanding its custom home furnishing business while controlling risks in its engineering business, with custom home furnishing revenue of 594 million yuan, down 11.41% year-on-year [5]. - The company reported a high dividend payout ratio, with a mid-term dividend of 0.28 yuan per share, totaling 230 million yuan, reflecting its status as a stable dividend stock in the real estate chain [6]. Financial Performance - In H1 2024, the gross profit margin was 17.47%, down 2.89 percentage points year-on-year, while the net profit margin was 6.36%, down 2.69 percentage points year-on-year [3]. - The company expects net profits attributable to shareholders to be 700 million yuan in 2024, 863 million yuan in 2025, and 1.003 billion yuan in 2026, with corresponding PE ratios of 11, 9, and 8 times [7][9]. - The total revenue is projected to reach 9.905 billion yuan in 2024, with a growth rate of 9.3% [8][9]. Business Segmentation - The decoration materials business generated 3.282 billion yuan in revenue, accounting for 83.98% of total revenue, with a year-on-year increase of 29.01%. The custom home furnishing business generated 594 million yuan, accounting for 15.20% of total revenue, with a year-on-year decrease of 11.41% [3][4].