Joyoung(SZ:002242) Tianfeng Securities·2024-08-31 14:11Investment Rating - The investment rating for the company is "Accumulate" with a target price set at 9.73 CNY [3]. Core Views - The company's revenue for H1 2024 reached 4.387 billion CNY, a year-on-year increase of 1.60%, while the net profit attributable to the parent company was 175 million CNY, a decrease of 29.04% [1]. - The internal sales core categories have shown signs of recovery, with internal sales revenue growing by 4.66% year-on-year, while external sales faced a significant decline of 9.69% [1]. - The gross profit margin for H1 2024 was 28.07%, an increase of 0.99 percentage points year-on-year, while the net profit margin was 3.94%, a decrease of 1.81 percentage points [1][2]. Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 2.321 billion CNY, a decline of 4.29% year-on-year, and a net profit of 45 million CNY, down 63.88% year-on-year [1]. - The gross profit margin for Q2 2024 was 29.10%, an increase of 2.64 percentage points year-on-year, while the net profit margin was 1.82%, a decrease of 3.37 percentage points [1]. Sales and Marketing - The sales expense ratio increased significantly due to the company's proactive expansion into emerging channels and coordination of various retail formats, leading to a 15.83% year-on-year increase in sales expenses [2]. - The company is focusing on the recovery of internal demand and the further improvement of core category sales, which may lead to gradual revenue performance improvement [2]. Profitability and Forecast - The forecast for net profit attributable to the parent company for 2024-2026 is adjusted to 418 million CNY, 482 million CNY, and 550 million CNY respectively, with corresponding dynamic P/E ratios of 18x, 15x, and 14x [2].