OPPEIN(603833) 光大证券·2024-09-01 06:41Investment Rating - Maintain "Buy" rating for Oppein Home Group (603833 SH) with a current price of 44 35 yuan [2] Core Views - Oppein Home Group continues to implement its whole-home strategy with steady growth in the whole-home channel and a slight increase in gross margin in the first half of 2024 [2][4] - The company's revenue for 1H2024 was 8 58 billion yuan, a year-on-year decrease of 12 8%, and net profit attributable to the parent company was 990 million yuan, a year-on-year decrease of 12 6% [3] - The company's gross margin for 1H2024 was 32 6%, a year-on-year increase of 1 1 percentage points, while the net profit margin attributable to the parent company remained flat at 11 5% [5] Revenue Breakdown - In 1H2024, revenue from cabinets, wardrobes and accessories, bathroom products, and wooden doors were 2 56 billion yuan, 4 42 billion yuan, 500 million yuan, and 500 million yuan, respectively, with year-on-year changes of -16 8%, -18 6%, +9 3%, and -13 6% [4] - Revenue from direct sales, distribution, and bulk sales channels were 330 million yuan, 6 4 billion yuan, and 1 5 billion yuan, respectively, with year-on-year changes of +17 3%, -17 6%, and +1 0% [4] - The whole-home channel revenue increased by 8 7% year-on-year, while the foreign trade channel revenue increased by 27% [4] Store Network - As of the end of 1H2024, the total number of dealer stores was 8,329, a decrease of 387 stores compared to the end of 2023 [4] - The number of stores for Oppein, Oppolia, Opponi, and Bonici brands were 5,644, 1,037, 954, and 539, respectively, with changes of -369, -41, -47, and +74 compared to the end of 2023 [4] - The number of effective retail whole-home stores exceeded 850, an increase of more than 200 compared to the end of 2023 [4] Financial Performance - The company's period expense ratio for 1H2024 was 22 0%, an increase of 4 0 percentage points year-on-year, mainly due to increased advertising and market promotion expenses [5] - The gross margin for cabinets, wardrobes and accessories, bathroom products, and wooden doors in 1H2024 were 29 2%, 36 7%, 25 0%, and 23 8%, respectively, with year-on-year changes of -1 1, +3 1, -1 4, and +2 8 percentage points [5] - The gross margin for direct sales, distribution, and bulk sales channels were 53 3%, 32 4%, and 25 2%, respectively, with year-on-year changes of -4 7, +1 3, and -2 8 percentage points [5] Forecast and Valuation - Revenue forecasts for 2024-2026 were revised down to 21 0 billion yuan, 22 18 billion yuan, and 24 66 billion yuan, respectively, with net profit forecasts revised down to 2 8 billion yuan, 3 04 billion yuan, and 3 42 billion yuan [6] - The EPS for 2024-2026 is expected to be 4 59 yuan, 4 99 yuan, and 5 61 yuan, with corresponding PE ratios of 10x, 9x, and 8x [6] - The company's ROE for 2024-2026 is expected to be 14 55%, 14 09%, and 14 10%, respectively [7] Strategic Initiatives - Oppein Home Group is actively promoting the transformation of its marketing system towards the whole-home strategy, with the whole-home channel continuing to achieve steady growth [4] - The company has implemented cost reduction and efficiency improvement measures, including organizational optimization and expense control, while strategically increasing investment in brand promotion, e-commerce traffic, and market training [5]