EASYHOME(000785) Guotou Securities·2024-09-02 06:44Investment Rating - The investment rating for the company is "Buy - A" with a target price of 4.31 CNY [4]. Core Views - The company reported a revenue of 6.347 billion CNY for H1 2024, a decrease of 0.88% year-on-year, and a net profit of 603 million CNY, down 30.44% year-on-year [1]. - The company is implementing a "one store, two systems" strategy, focusing on digital transformation and achieving significant results in its operations [2]. - The company's gross margin for H1 2024 was 33.32%, a decline of 3.89 percentage points year-on-year, while the net profit margin was 9.59%, down 4.25 percentage points year-on-year [3][8]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 6.347 billion CNY, with a net profit of 603 million CNY, reflecting a year-on-year decline of 30.44% [1]. - The revenue breakdown for H1 2024 shows leasing management at 3.027 billion CNY, product sales at 2.804 billion CNY, and other services contributing smaller amounts, with notable declines in renovation services and loan factoring [2]. - The company’s gross margin decreased to 33.32% in H1 2024, with a further decline to 29.99% in Q2 2024 [3]. Business Strategy - The company has fully implemented the "one store, two systems" strategy, which includes a fixed rent and sales sharing model, enhancing its partnership with merchants [2]. - The company is focusing on digital transformation, with significant developments in AI design platforms and cross-border e-commerce initiatives [2]. Cost Management - The company managed to reduce its expense ratio to 21.10% in H1 2024, down 2.06 percentage points year-on-year, indicating effective cost control measures [3].