LANCY(002612)2024-08-31 03:01Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 13.18 CNY [3]. Core Views - The company achieved a revenue of 2.689 billion CNY in H1 2024, representing a year-on-year increase of 6.21%. The net profit attributable to shareholders was 152 million CNY, up 1.14% year-on-year [1]. - The company plans to acquire 100% of Beijing Lido and 70% of Hunan Yamei, which will enhance its medical beauty business and contribute to future growth [1]. - The company is positioned as a regional leader in the medical beauty sector, with expected revenue growth driven by both organic growth and acquisitions [1]. Financial Performance Summary - Revenue Breakdown: In H1 2024, the women's clothing segment generated 1.012 billion CNY (up 11.41% YoY), medical beauty segment 1.194 billion CNY (up 6.02% YoY), and the infant segment 450 million CNY (down 4.13% YoY) [1]. - Gross Margin: The overall gross margin for H1 2024 was 59.78%, an increase of 0.79 percentage points YoY. The gross margins for women's clothing, medical beauty, and infant segments were 64.29%, 54.23%, and 63.52%, respectively [1]. - Net Profit Margin: The net profit margin for H1 2024 was 6.21%, a decrease of 0.27 percentage points YoY [1]. Future Projections - The company is projected to achieve revenues of 5.993 billion CNY, 6.833 billion CNY, and 7.586 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 16.5%, 14.0%, and 11.0% [2][4]. - The net profit attributable to shareholders is expected to reach 309 million CNY, 380 million CNY, and 443 million CNY for the same years, with growth rates of 37.3%, 22.8%, and 16.7% [2][4]. - The company’s PE ratios are projected to be 19, 15, and 13 for 2024, 2025, and 2026, respectively [2][4].