Semir(SZ:002563) Soochow Securities·2024-08-31 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 5.96 billion yuan for H1 2024, a year-on-year increase of 7.1%, and a net profit attributable to shareholders of 550 million yuan, also up 7.1% year-on-year [2] - The company has resumed net store openings in casual wear and is renovating children's clothing stores, with a focus on enhancing digital capabilities and operational efficiency [2][3] - The gross profit margin for H1 2024 increased by 1.48 percentage points to 46.11%, driven by improvements in online product structure and discount strategies [3] - The company has adjusted its net profit forecasts for 2024-2025 to 1.24 billion yuan and 1.37 billion yuan, respectively, while introducing a new forecast for 2026 at 1.51 billion yuan [3] Summary by Sections Financial Performance - Total revenue for 2022 was 13.33 billion yuan, with a decline of 13.54% year-on-year, while 2023 revenue was 13.66 billion yuan, showing a growth of 2.47% [1] - The net profit attributable to shareholders for 2022 was 637 million yuan, down 57.15% year-on-year, while 2023 net profit was 1.12 billion yuan, up 76.06% [1] - The company expects total revenue to reach 15.03 billion yuan in 2024, with a growth rate of 10% [1] Store and Product Development - As of H1 2024, the company had 2,755 casual wear stores and 5,385 children's clothing stores, with casual wear showing a year-on-year revenue increase of 7.7% [2] - The company has opened over 200 new stores under the "New Semir" model, which includes adult clothing, children's wear, footwear, and underwear [2] Online and Offline Sales Channels - Online sales increased by 3.4%, while direct sales and franchise sales grew by 5.0% and 11.8%, respectively [2] - The company is enhancing its "full-domain integration" reform to improve the consistency of pricing and product offerings across online and offline channels [2] Profitability and Cash Flow - The net profit margin for H1 2024 remained stable at 9.28%, despite challenges such as reduced government subsidies and increased tax liabilities [3] - The company reported a cash flow from operating activities of -5.43 million yuan for H1 2024, primarily due to increased prepayments for autumn and winter inventory [3]