Investment Rating - Buy (Maintained) [1] Core Views - The company has shifted its focus from expanding store numbers to improving store quality, with a reduction in total stores from 3,816 in 2023 to 3,456 in 2024H1 [2] - Directly operated stores increased by 15 to 1,735, surpassing the number of franchised stores, which decreased by 375 to 1,721 [2] - Revenue from directly operated/franchised/online/other channels was RMB 697/327/178/57 million, representing year-on-year changes of -7.2%/-19.8%/-17.1%/+40.0% respectively [2] - The company's gross profit margin improved to 55.4% in 2024H1, up 2.9 percentage points year-on-year, driven by lower raw material costs and supply chain optimization [4] - The company's net profit margin declined to 2.6% in 2024H1, down 4.6 percentage points year-on-year, due to increased sales expenses and declining revenue [4] Store Performance and Strategies - Average store revenue declined in 2024H1, with average customer spending per transaction dropping 10% year-on-year to RMB 55.57 [2] - The company has implemented multiple measures to boost store performance, including piloting new store formats, enhancing store management, and diversifying product offerings [2] - A total of 127 "dual-format" stores combining fresh and bulk products have been opened in Wuhan and surrounding areas as of 2024H1 [2] Financial Performance - The company reported revenue of RMB 1.26 billion in 2024H1, a year-on-year decrease of 10.97% [3] - Net profit attributable to shareholders was RMB 33 million in 2024H1, a year-on-year decrease of 67.65% [3] - Sales/management expense ratios were 40.1%/9.5% in 2024H1, representing year-on-year changes of +6.6 percentage points/-1.8 percentage points [4] Forecast and Valuation - Revenue is expected to be RMB 2.444/2.575/2.712 billion in 2024/2025/2026, with year-on-year growth rates of -11%/+5%/+5% [5] - Net profit attributable to shareholders is forecasted to be RMB 100/193/214 million in 2024/2025/2026, with year-on-year growth rates of -14%/+94%/+11% [5] - EPS is projected to be RMB 0.04/0.08/0.09 in 2024/2025/2026, with corresponding P/E ratios of 31/16/14X [5] Market Data - Current stock price: HKD 1.44 as of 2024/08/28 [2] - Market capitalization: HKD 3,351.63 million [2] - Average daily trading volume: HKD 6.91 million [2]
周黑鸭：2024年半年报点评：成本优化下毛利率回升，多重措施提振店效