Entive(300911) 华创证券·2024-08-31 14:23Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 25 yuan, while the current price is 21.22 yuan [1]. Core Views - The company experienced significant revenue pressure, with a total operating income of 343 million yuan in H1 2024, down 44.42% year-on-year, and a net profit attributable to shareholders of 18 million yuan, down 86.12% year-on-year [1]. - The decline in revenue is attributed to a downturn in the real estate market and sluggish consumer spending, leading to a double-digit decline in the integrated stove industry [1]. - The company is focusing on channel development and enhancing sales capabilities, particularly in e-commerce, while also expanding into new retail and lower-tier markets [1]. Financial Performance Summary - In H1 2024, the company’s revenue from integrated stoves and other products decreased by 44.95% and 40.07% respectively [1]. - The gross profit margin in Q2 2024 was 42.96%, a decrease of 9.84 percentage points year-on-year, primarily due to an increase in the proportion of low-priced products [1]. - The net profit margin in Q2 2024 was 6.06%, down 16.15 percentage points year-on-year, indicating pressure on profitability [1]. Financial Forecast - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.66 yuan, 0.76 yuan, and 0.88 yuan respectively, with corresponding price-to-earnings (PE) ratios of 32, 28, and 24 [2][6]. - The total operating revenue is expected to decline to 817 million yuan in 2024, a decrease of 33.4% year-on-year, before recovering in subsequent years [2][6].