WLY(SZ:000858) KAIYUAN SECURITIES·2024-09-02 05:01Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has demonstrated resilient performance with a healthy growth trend, achieving a revenue of 50.65 billion yuan in H1 2024, a year-on-year increase of 11.3%, and a net profit of 19.06 billion yuan, up 11.9% year-on-year [2][3] - The company is expected to maintain healthy growth over the next 2-3 years, despite a slight adjustment in profit forecasts for 2024-2026 due to proactive inventory control [2][3] Financial Performance Summary - In H1 2024, the company's product revenue reached 39.21 billion yuan, with a year-on-year growth of 11.5%, driven by a sales volume increase of 12.1% [3] - The company has improved its channel relationships and price control, resulting in a gross margin increase to 75.0% in Q2 2024, up 1.74 percentage points year-on-year [4][5] - The operating cash flow for H1 2024 increased by 18.5% year-on-year to 13.43 billion yuan, indicating strong cash flow performance [5] Regional Performance - The company experienced varied growth rates across regions in H1 2024, with the East and West regions showing strong growth at 15.7% and 16.7% respectively, while the South region had the lowest growth at 0.6% [4] Future Projections - The company forecasts net profits of 33.86 billion yuan, 37.67 billion yuan, and 41.33 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 12.1%, 11.3%, and 9.7% [6][9]