DSL(SH:603233) Guotou Securities·2024-08-31 09:38Investment Rating - The report maintains a "Buy-A" investment rating for the company [1][4] Core Views - The company reported a revenue of 13.345 billion yuan for H1 2024, representing a year-on-year growth of 11.29%. However, the net profit attributable to shareholders decreased by 28.32% to 658 million yuan due to declining consumer spending and many new stores still in the cultivation phase [2][3] - The company continues to expand its store network, with a total of 16,151 stores as of H1 2024, including 5,379 franchise stores. The company opened 797 new stores and 1,214 new franchise stores during this period [3] - Revenue growth varied by region, with South China achieving 8.605 billion yuan (+5.30%), East China 1.009 billion yuan (+18.73%), and Northeast/ North China/ Southwest/ Northwest 2.226 billion yuan (+44.16%) [3] Financial Summary - The projected net profits for the company from 2024 to 2026 are 1.318 billion yuan, 1.546 billion yuan, and 1.819 billion yuan respectively. The expected EPS for 2024 is 1.16 yuan per share, with a target price of 17.40 yuan per share based on a 15x PE ratio [4][8] - The company’s revenue is expected to grow from 26.666 billion yuan in 2024 to 38.618 billion yuan in 2026, with a net profit margin projected to remain around 4.9% [8]