LSR(002858) 西南证券·2024-09-01 10:31Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.97 CNY over the next six months [1][8]. Core Insights - The company reported a revenue of 220 million CNY for H1 2024, representing a year-on-year growth of 22.8%. The net profit attributable to the parent company was 13.685 million CNY, up 15.6% year-on-year. The gross margin decreased to 27.3%, down 8.8 percentage points, while the net margin was 14.1%, down 3.1 percentage points [1][6]. - The revenue for Q2 2024 was 120 million CNY, showing a year-on-year increase of 32.5%, with a net profit of 2.12 million CNY, up 18.6% year-on-year [1]. - The company is expanding its event management business, with significant revenue growth attributed to the return of the FE event to Shanghai and the addition of the F4 Australia event. The event management revenue reached 150 million CNY, a 34.1% increase year-on-year [1][6]. - The company is also investing in a new project in Hainan, which is expected to enhance its profitability by over 50 million CNY annually upon completion [1][6]. Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 220 million CNY, a 22.8% increase year-on-year, and a net profit of 13.685 million CNY, a 15.6% increase year-on-year. The gross margin was 27.3%, down 8.8 percentage points, and the net margin was 14.1%, down 3.1 percentage points [1][6]. - Q2 2024 revenue was 120 million CNY, up 32.5% year-on-year, with a net profit of 2.12 million CNY, an 18.6% increase year-on-year [1]. Business Segments - Event management revenue was 150 million CNY, a 34.1% increase year-on-year, driven by the return of the FE event and the new F4 Australia event. The gross margin for this segment was 29.2%, down 12.1 percentage points [1][6]. - Venue management revenue reached 54.73 million CNY, a 28.9% increase year-on-year, with a gross margin of 19.9%, down 2.7 percentage points due to the opening of three new karting venues [1][6]. - Marketing services revenue was 10.007 million CNY, a 30.0% increase year-on-year, with a gross margin of 41.2%, up 29.9 percentage points [1][6]. Future Outlook - The company is expected to benefit from the increasing popularity of motorsport events and its digital initiatives, with projected net profits of 60 million CNY, 90 million CNY, and 110 million CNY for 2024, 2025, and 2026, respectively [2][6][8].