OPPEIN(603833) HUAXI Securities·2024-09-02 04:08Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company is experiencing revenue pressure due to a combination of weak real estate transactions and a transition in its internal structure, leading to a decline in revenue [3] - The company is actively pursuing a transformation towards a comprehensive home furnishing sales model, which is currently in a transitional phase [3] - Despite the revenue decline, the company has managed to improve its profitability through cost reduction and efficiency enhancement measures [4] - The company is expected to face short-term performance pressures but is anticipated to achieve recovery growth post-structural adjustments [5] Revenue Summary - In H1 2024, the company reported revenue of 8.583 billion yuan, a year-on-year decrease of 12.81%, with a net profit of 990 million yuan, down 12.61% [2] - For Q2 2024, revenue was 4.962 billion yuan, a year-on-year decline of 20.91%, and net profit was 772 million yuan, down 21.26% [2] - Revenue by product category showed declines in cabinets and wardrobes, while bathroom products and doors experienced growth [3] Profitability Summary - The company achieved a gross margin of 32.57%, an increase of 1.05 percentage points, and a net margin of 11.57%, up 0.13 percentage points in H1 2024 [4] - The company implemented various cost control measures, resulting in a slight increase in the overall profitability despite rising expenses [4] Financial Forecast - The company’s projected revenues for 2024-2026 are 20.504 billion, 22.554 billion, and 25.486 billion yuan, respectively [5] - Earnings per share (EPS) for the same period are forecasted to be 4.50, 5.00, and 5.70 yuan, respectively [5] - The price-to-earnings (PE) ratios for 2024-2026 are expected to be 9.85, 8.87, and 7.78 times, respectively [5]