Investment Rating - The report has adjusted the investment rating to "Accumulate" [1][6] Core Views - The company experienced a revenue decline of 7.82% year-on-year in H1 2024, with total revenue of 209 million and a net profit attributable to shareholders of 11 million, down 61.84% year-on-year [1] - The decline in revenue is primarily attributed to a 31.27% drop in income from real estate clients, reflecting the ongoing downturn in the real estate sector [1] - Despite the current challenges, the report expresses optimism about the company's long-term growth potential, particularly in diversifying its business and expanding its IDI-TIS services [1][3] Financial Performance Summary - In H1 2024, the company reported a revenue of 209 million, a net profit of 11 million, and a non-recurring net profit of 7 million, with respective year-on-year changes of -7.82%, -61.84%, and -43.28% [1] - The second quarter of 2024 saw a revenue of 132 million, with a net profit of 7 million, reflecting a year-on-year decline of 3.65% and 64.31% respectively [1] - The overall gross margin for H1 2024 was 36.82%, down 2.38 percentage points year-on-year, while the gross margin for Q2 2024 was 42.43%, up 0.85 percentage points year-on-year [2] Business Segment Analysis - Revenue from third-party evaluations and project management in H1 2024 was 122 million and 86 million, showing year-on-year changes of -16.35% and +7.54% respectively [2] - The company has successfully increased its market share in the South China region, achieving a revenue growth of 7.11% in this area, with a gross margin increase of 1.43 percentage points to 38.03% [2] Client Development and New Opportunities - The company is actively expanding its client base in the industrial and insurance sectors, with revenues from these clients growing significantly by 190.04% and 25.57% year-on-year respectively [3] - The introduction of a housing pension system by the Ministry of Housing and Urban-Rural Development is seen as a potential growth opportunity for the company, particularly in providing TIS services for housing inspections and insurance [3] Cost and Expense Management - The expense ratio for H1 2024 was 31.87%, an increase of 3.31 percentage points year-on-year, with sales, management, R&D, and financial expense ratios showing varied changes [4] - The net profit margin for H1 2024 was 5.32%, down 7.22 percentage points year-on-year, while the cash flow from operations was negative at -59 million, reflecting a year-on-year increase in cash outflow of 44 million [4]
深圳瑞捷：地产客户收入下滑拖累业绩增长，TIS业务厚植发展新动能