Investment Rating - The report maintains a rating of "Buy" with a target price of RMB 19.50 for the company [6][7]. Core Views - The company reported a revenue of RMB 780 million for H1 2024, a year-on-year decline of 37.3%, with a net profit attributable to the parent company of RMB 32.81 million, down 38.6% year-on-year. Q2 revenue was RMB 350 million, down 34.4% year-on-year, but the company turned a profit of RMB 3.35 million compared to a loss of RMB 47.52 million in the same period last year, primarily due to investment income from financial products [1]. - The company has adjusted its store count, opening 7 new stores and closing 84, resulting in a net decrease of 77 stores, totaling 451 stores as of H1 2024. This store optimization, along with competitive pressures, has led to a contraction in the main business, with online self-operated, offline direct, and offline joint venture revenues declining by 25.7%, 38.7%, and 38.1% respectively [2]. - The company is actively exploring high-end jewelry and wedding gold products to enhance brand strength and diversify its product line. Collaborations with renowned designers and luxury brands have been initiated to boost brand recognition [3]. - The upcoming peak wedding season is anticipated to revive demand, with the company expected to benefit from market share gains amid industry consolidation. The recovery in wedding demand is projected to improve profitability [4]. Financial Summary - For the fiscal years 2024E to 2026E, the company is expected to generate revenues of RMB 1.477 billion, RMB 1.665 billion, and RMB 1.979 billion respectively, with net profits of RMB 310.72 million, RMB 363.90 million, and RMB 434.15 million, reflecting a significant recovery in profitability in 2024E [5][12]. - The company’s cash and financial assets totaled RMB 4.94 billion as of H1 2024, supporting its financial stability [1]. - The report provides a comparison of the company's PE ratio with peers, indicating a target PE of 25x for 2024, which is lower than the previous target of 24.75 [1][9].
迪阿股份：投资收益拉动，Q2同比扭亏