DEEJ(000423) 兴业证券·2024-08-29 13:15Investment Rating - Maintain "Overweight" rating [2][3] Core Views - The company achieved steady growth in the first half of 2024, with significant improvement in profitability [2] - Revenue in H1 2024 reached 2 748 billion yuan, up 26 80% YoY, while net profit attributable to shareholders was 738 million yuan, up 39 03% YoY [2] - Gross margin in H1 2024 was 73 54%, up 3 20pct YoY, and net profit margin was 26 88%, up 2 34pct YoY [2] - The company announced a high proportion of interim dividend, planning to distribute 11 44 yuan per 10 shares, with a total cash dividend of 737 million yuan, accounting for 99 77% of H1 2024 net profit [3] Financial Performance - Revenue in 2023 was 4 715 billion yuan, expected to grow to 5 621 billion yuan in 2024E, 6 521 billion yuan in 2025E, and 7 539 billion yuan in 2026E [2] - Net profit attributable to shareholders in 2023 was 1 151 billion yuan, expected to grow to 1 432 billion yuan in 2024E, 1 711 billion yuan in 2025E, and 2 036 billion yuan in 2026E [2] - Gross margin is expected to increase from 70 2% in 2023 to 72 6% in 2026E [2] - ROE is expected to increase from 10 7% in 2023 to 18 7% in 2026E [2] Business Highlights - The company's Ejiao series performed well in H1 2024, with revenue of 2 551 billion yuan, up 32 52% YoY, and gross margin increased by 2 48pct to 75 36% [3] - The company continues to strengthen its brand advantage and product competitiveness, driving strong performance [3] Valuation - Based on the closing price on August 23, 2024, the PE ratio is 22 0x for 2024E, 18 4x for 2025E, and 15 5x for 2026E [3] - The PB ratio is 3 1x for 2024E, 3 0x for 2025E, and 2 9x for 2026E [4]