OPPLE(SH:603515) Guotou Securities·2024-08-29 13:14Investment Rating - The investment rating for the company is "Buy-A" with a target price of 15.47 CNY for the next six months, corresponding to a PE valuation of 13x for 2024 [4][12]. Core Views - The company reported a revenue of 3.37 billion CNY for the first half of 2024, a year-over-year decrease of 5.0%, and a net profit of 380 million CNY, down 3.0% year-over-year. In Q2 2024, the revenue was 1.78 billion CNY, down 12.6% year-over-year, and the net profit was 260 million CNY, down 11.7% year-over-year [2][3]. - Despite external pressures from the real estate downturn and weak consumer demand, the company is focusing on enhancing its competitive advantages through digital transformation and platform development [2][3]. - The company has maintained a strong cash position, with cash and cash equivalents plus trading financial assets amounting to 5.67 billion CNY, representing 58% of total assets [4]. Financial Performance Summary - The gross margin for Q2 2024 was 40.0%, an increase of 0.8 percentage points year-over-year, influenced by the company's product platform development and competitive pricing pressures [3]. - The net profit margin for Q2 2024 was 14.8%, up 0.2 percentage points year-over-year, while the non-recurring net profit margin decreased by 1.2 percentage points year-over-year [3]. - The company has increased its sales, management, and R&D expense ratios by 1.7%, 0.4%, and 0.3% year-over-year, respectively, indicating a commitment to strengthening its market position [3]. Future Projections - The company is expected to achieve earnings per share (EPS) of 1.19 CNY, 1.26 CNY, and 1.33 CNY for the years 2024, 2025, and 2026, respectively [4][12]. - Revenue projections for the upcoming years are 7.54 billion CNY in 2024, 7.95 billion CNY in 2025, and 8.36 billion CNY in 2026, reflecting a gradual recovery [12].