Red Star Macalline(SH:601828) EBSCN·2024-09-02 14:07Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [5]. Core Views - The company reported a significant decline in revenue and a net loss for the first half of 2024, with revenue down 25.35% year-on-year to 4.225 billion yuan and a net loss of 1.253 billion yuan [1]. - The company has launched multiple strategic initiatives aimed at long-term development, including the "3+Star Ecosystem" strategy and plans to establish 100 high-end home appliance stores across the country [2]. - The earnings forecast for 2024, 2025, and 2026 has been revised downwards due to higher credit and asset impairment losses, with expected EPS of -0.02, 0.06, and 0.07 yuan respectively [3]. Summary by Sections Financial Performance - In 1H2024, the company achieved a gross margin of 60.67%, an increase of 1.24 percentage points year-on-year, while the expense ratio rose by 7.47 percentage points to 52.67% [1]. - The second quarter of 2024 saw a revenue of 2.113 billion yuan, a decrease of 30.56% year-on-year, and a net loss of 882 million yuan [1]. Strategic Initiatives - The "3+Star Ecosystem" strategy aims to complement existing large appliances with a range of small home appliances and lifestyle products, with plans to open 100 high-end stores by 2025 [2]. - The company has also introduced a "533" rental policy to enhance its leasing strategy [2]. Earnings Forecast - The report has adjusted the EPS forecast for the next three years, reflecting the impact of credit losses and real estate valuation changes, with the new estimates being -0.02, 0.06, and 0.07 yuan for 2024, 2025, and 2026 respectively [3].