CHJ(SZ:002345) Shanxi Securities·2024-08-29 10:31Investment Rating - The report maintains an "Accumulate-A" rating for the company, indicating a positive outlook for its stock performance in the near term [4]. Core Views - The company achieved steady growth in revenue and profit in the first half of 2024, with revenue reaching 3.431 billion yuan, a year-on-year increase of 14.15%, and a net profit of 229 million yuan, up 10.04% year-on-year [2][4]. - The jewelry business showed robust performance, while the handbag segment faced challenges [1][4]. - The company plans to distribute a cash dividend of 1 yuan per 10 shares, with a payout ratio of 38.72% [2]. Summary by Sections Market Performance - In H1 2024, the company reported revenue of 3.431 billion yuan, with Q1 and Q2 revenues of 1.796 billion yuan and 1.635 billion yuan, reflecting year-on-year growth of 17.87% and 10.33% respectively [1]. - The net profit for H1 2024 was 229 million yuan, with Q1 and Q2 net profits of 131 million yuan and 99 million yuan, showing year-on-year growth of 5.47% and 16.76% respectively [1]. Product Performance - Revenue from fashion jewelry reached 1.654 billion yuan, up 5.97% year-on-year, while traditional gold jewelry revenue was 1.477 billion yuan, a significant increase of 31.37% year-on-year [1]. - The handbag business saw a decline in revenue, down 26.07% to 148 million yuan, while brand licensing and franchise services grew by 41.00% to 123 million yuan [1]. Financial Metrics - The company's gross margin decreased to 24.1% in H1 2024, primarily due to a higher sales proportion of lower-margin traditional gold products [3]. - The net profit margin for H1 2024 was 6.7%, a slight decrease of 0.2 percentage points year-on-year [3]. - The company’s operating cash flow for H1 2024 was 339 million yuan, a decrease of 8.4% year-on-year [3]. Future Outlook - The company expects EPS for 2024-2026 to be 0.45, 0.52, and 0.60 yuan respectively, with corresponding P/E ratios of 10.0, 8.6, and 7.5 times [4].