Hotata(603848) Guoxin Securities·2024-09-02 07:30Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][12] Core Views - The company reported a slight decline in revenue in Q2 2024, with a revenue of 710 million (-0.9% YoY) and a net profit of 140 million (-4.5% YoY) for H1 2024. The Q2 revenue was 420 million (-5.0% YoY) with a net profit of 90 million (-13.7% YoY). Despite the decline, the overall performance remains stable due to a strong multi-channel strategy and significant online sales growth during promotional events [1][2][3] - The smart drying market shows significant potential, with expected sales of over 10 million units by 2024 and an industry scale exceeding 20 billion by 2026, with an average growth rate of over 20% [1][2] - The company has a strong brand presence and channel advantages, with high brand recognition in smart drying products and a comprehensive retail transformation strategy that includes both online and offline channels [1][2][3] Financial Performance Summary - For H1 2024, the company achieved a revenue of 710 million, with a net profit of 140 million. The Q2 gross margin was 56.2%, an increase of 4.7 percentage points YoY, primarily due to cost reductions from in-house component manufacturing [1][2] - The company adjusted its profit forecast, expecting net profits of 360 million, 410 million, and 460 million for 2024, 2025, and 2026 respectively, with growth rates of 9.3%, 13.3%, and 14.4% [1][2][12] - The current stock price corresponds to a PE ratio of 13, 12, and 10 for the years 2024, 2025, and 2026 respectively [1][2][12]