三人行：因外部环境业绩承压，财务质量提升

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 27.24 [1][2] Core Views - The company's performance in H1 2024 was under pressure due to weak external conditions, with revenue declining by 12.82% YoY to RMB 1.912 billion and net profit attributable to the parent company dropping by 40.13% YoY to RMB 130 million [4] - The company has actively responded to market changes, strengthened internal management, and improved financial quality, with the debt-to-asset ratio decreasing from 40.39% to 38.09% [6] - The company focuses on its core business, continuously improving professional capabilities and competitiveness, serving major clients such as Yili, China Mobile, and JD.com [7] Financial Performance - In H1 2024, the company's revenue decreased by approximately 13% YoY, mainly due to weak external conditions and tightened marketing budgets from advertisers [5] - The comprehensive gross margin in H1 2024 was 19.08%, a decrease of 2.13 percentage points YoY, primarily due to rigid costs despite declining revenue [5] - The company's operating cash flow improved significantly, with a net cash flow from operating activities of RMB -140 million, an increase of RMB 258 million compared to H1 2023 [6] Business Strategy - The company has adjusted its business strategy to adapt to market changes, focusing on core business areas and enhancing integration and synergy capabilities [7] - It has optimized resource allocation, deepened its presence in existing markets, and expanded into new markets, successfully executing advertising and brand communication services for major clients [7] Valuation and Forecast - The report adjusts the company's net profit forecast for 2024-2026 to RMB 483 million, RMB 575 million, and RMB 636 million, respectively, due to weaker-than-expected performance [4] - The company's 2024E PE ratio is set at 12X, reflecting a discount compared to the industry average of 21X, considering uncertainties in investment income realization [4] Industry Comparison - The average PE ratio for comparable companies in 2024 is 21X, with the company's valuation set at a discount due to its performance and investment income uncertainties [4][11]