Bestore(603719) Changjiang Securities·2024-09-02 07:44Investment Rating - The investment rating for the company is "Buy" and is maintained [5] Core Views - The company's total revenue for H1 2024 was 3.886 billion, a year-on-year decline of 2.52%, while the net profit attributable to the parent company was 23.89 million, down 87.38% year-on-year [2][3] - In Q2 2024, total revenue was 1.435 billion, a year-on-year decline of 10.43%, with a net profit of -38.59 million, a year-on-year decline of 195.02% [2] - The decline in revenue is attributed to adjustments in offline stores and ongoing decentralization in online sales channels [2] - The company closed a net of 219 stores in Q2 2024, with 68 direct-operated and 151 franchised stores closed, primarily in Central, East, and Southwest China [2] - The company's gross profit margin for H1 2024 decreased by 2.56 percentage points to 26.39%, and the net profit margin decreased by 4.13 percentage points to 0.61% [3] - The company is expected to gradually recover its profitability through a coordinated development strategy across all channels, with a forecasted EPS of 0.20 and 0.42 for 2024 and 2025, respectively [3] Financial Summary - The company's total revenue for 2023 is projected at 8.046 billion, with a slight increase to 8.065 billion in 2024 and further growth to 8.589 billion in 2025 [7] - The net profit for 2024 is expected to be 80 million, with an EPS of 0.20, and is projected to increase to 168 million and an EPS of 0.42 in 2025 [7] - The company's cash flow from operating activities is projected to decrease from 1.280 billion in 2023 to 696 million in 2024 [7]