BEAR APPLIANCE(SZ:002959) Guotou Securities·2024-08-29 02:13Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 48.44 CNY for the next six months, based on a projected P/E ratio of 20 times for 2024 [4][2]. Core Views - The company is experiencing short-term operational pressure but is expected to improve in the future as it expands its product categories and continues to grow in overseas markets. The revenue is anticipated to recover rapidly [1][2]. - In the first half of 2024, the company reported a revenue of 2.13 billion CNY, a year-on-year decrease of 9.0%, and a net profit attributable to shareholders of 160 million CNY, down 32.0% year-on-year [1]. - The second quarter of 2024 saw a revenue of 940 million CNY, reflecting a year-on-year decline of 14.0%, with a net profit of 10 million CNY, down 85.9% year-on-year [1]. Financial Performance Summary - The company's revenue in 2024 is projected to be 4.71 billion CNY, with net profit expected to be 450 million CNY, and EPS forecasted at 2.42 CNY [3][9]. - The company’s overseas revenue grew by 27% year-on-year in the first half of 2024, indicating strong growth momentum in international markets [1]. - The gross profit margin decreased by 1.0 percentage points year-on-year in Q2 2024, while the net profit margin fell by 5.5 percentage points year-on-year, primarily due to increased R&D and management expenses [1][6]. Revenue and Profitability Trends - The overall retail sales of kitchen small appliances in China decreased by 5% year-on-year in the first half of 2024, contributing to the decline in the company's revenue [1]. - The average selling price of the company's products dropped by 14% year-on-year in Q2 2024, with online sales on major platforms like Taobao, JD, and Douyin experiencing declines of 9%, 29%, and 55% respectively [1]. - The company’s operating cash flow in Q2 2024 decreased by 310 million CNY year-on-year, attributed to rising raw material costs and declining sales revenue [1][6].