Investment Rating - The investment rating for the company is "Recommended (Maintain)" with a current stock price of 1.15 HKD [1]. Core Views - The company reported a revenue of 314 million HKD for H1 2024, representing a year-on-year growth of 8.8%, while the net profit attributable to shareholders decreased by 8.1% to 89 million HKD [3]. - The company emphasizes quality improvement and efficiency enhancement in its ongoing projects, with same-store traffic increasing by 16% and same-store sales rising by 8% in H1 2024 [3]. - The overall gross margin stands at 51.6%, with stable margins across most operational models, despite some pressure from new projects still in the cultivation phase [3]. - The company has a strong cash position, with cash increasing by 3.9% compared to the end of 2023, and a dividend payout ratio of 50% [3]. - The company has opened new projects in Guangzhou and Shanghai, continuing its strategic focus on the Greater Bay Area and national expansion [3]. - The associated company, Xinghe Holdings, maintains a stable operation with a AAA credit rating, indicating strong financial health [3]. Financial Summary - For H1 2024, the company achieved a revenue of 314 million HKD, with a gross margin of 51.6% [3]. - The projected earnings per share (EPS) for 2024-2026 are adjusted to 0.15 HKD, 0.16 HKD, and 0.16 HKD respectively, reflecting a decrease from previous estimates [3]. - The price-to-earnings (P/E) ratios for the next three years are projected at 6.9x, 6.7x, and 6.5x [4][3]. - The company’s total assets are projected to grow from 2,325 million HKD in 2023 to 2,984 million HKD by 2026 [7].
星盛商业：短期承压，提质增效