ELLASSAY(603808) 东吴证券·2024-09-02 09:00Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported strong domestic business growth in the first half of 2024, with revenue of 1.45 billion yuan, a year-on-year increase of 5.5%, while net profit attributable to shareholders was 58.55 million yuan, a year-on-year decrease of 46.6%, primarily due to losses in overseas operations [1] - Domestic brands, excluding Ed Hardy, showed good growth, with the main brand and others like Laurel and IRO experiencing revenue increases of 21%, 28%, and 20% respectively [1] - Online sales channels have seen significant growth, with online revenue increasing by 33.2% year-on-year, while the overall performance was impacted by a decline in overseas markets [1] Summary by Sections Financial Performance - Total revenue for 2022 was 2.395 billion yuan, with a projected increase to 3.108 billion yuan in 2024, reflecting a year-on-year growth of 6.62% [1] - Net profit attributable to shareholders was 20.45 million yuan in 2022, expected to rise to 184.44 million yuan in 2024, indicating a year-on-year growth of 74.59% [1] - The company’s gross margin improved slightly to 69.24% in the first half of 2024, while the net profit margin decreased to 4.04% [1] Revenue Breakdown - In the first half of 2024, domestic business revenue grew by 9% when excluding overseas operations, indicating resilience in the domestic market [1] - Online sales accounted for 18% of total revenue, with significant contributions from various platforms [1] Future Projections - The company’s net profit forecasts for 2024 and 2025 have been adjusted to 184 million yuan and 272 million yuan respectively, with a new projection for 2026 at 315 million yuan [1] - The price-to-earnings ratio is projected to decrease from 13x in 2024 to 7x in 2026, reflecting a more favorable valuation outlook [1]