ZBOM(SH:603801) Huaan Securities·2024-08-31 12:09Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing pressure on its performance in H1 2024, with revenue of 2.212 billion yuan, a decrease of 3.85% year-on-year, and a net profit attributable to shareholders of 149 million yuan, down 17.05% year-on-year [1] - The company has seen steady growth in its wooden door business, with significant increases in bulk and overseas channels [1] - The company is actively expanding its distribution channels, particularly in the southern China market, with the new Qingyuan base expected to contribute significantly to revenue [2] Financial Performance Summary - For H1 2024, the company achieved revenue of 2.212 billion yuan, with a net profit of 149 million yuan, and a non-net profit of 126 million yuan, reflecting year-on-year declines of 17.05% and 23.74% respectively [1] - The company’s gross margin for H1 2024 was 36.69%, a slight decrease from the previous year [1] - Revenue projections for 2024-2026 are estimated at 6.121 billion, 6.619 billion, and 7.043 billion yuan, with expected year-on-year growth rates of 0.1%, 8.1%, and 6.4% respectively [2][4] - The net profit attributable to shareholders is projected to be 543 million, 622 million, and 702 million yuan for 2024-2026, with year-on-year changes of -8.8%, +14.6%, and +12.8% respectively [2][4] Business Segment Analysis - The company’s revenue from various product segments in H1 2024 was as follows: overall kitchen cabinets (966 million yuan), custom wardrobes (928 million yuan), wooden doors (139 million yuan), and others (178 million yuan), with year-on-year changes of -3.73%, -5.86%, +6.88%, and -1.23% respectively [1] - The company has established over 1,120 stores for its door and wall products nationwide, indicating a continuous expansion of its business footprint [1] - The company’s gross margin by product for H1 2024 was: overall kitchen cabinets (38.77%), custom wardrobes (40.86%), wooden doors (17.20%), and others (18.86%) [1] Market Strategy and Outlook - The company is focusing on a multi-channel strategy to enhance its home furnishing business, with ongoing efforts to penetrate new markets and improve its product offerings [2] - The company is also exploring overseas retail business models, having established a presence in North America, the Middle East, Australia, and Southeast Asia [1][2] - The company’s management expects that the scale effect will drive improvements in the gross margins of wardrobes and wooden doors [2]