Jiajiayue(SH:603708) Guotai Junan Securities·2024-09-03 05:41Investment Rating - The investment rating for the company is "Accumulate" [2] Core Views - The company focuses on enhancing quality in response to consumer demand, transitioning stores towards quality operations, which is expected to improve profitability [3] - The company has maintained its earnings per share (EPS) estimates for 2024, 2025, and 2026 at 0.23, 0.24, and 0.25 yuan respectively, while adjusting the target price down to 10.86 yuan from the previous 13.19 yuan [4] Financial Summary - For the first half of 2024, the company reported a revenue of 9.362 billion yuan, a year-on-year increase of 2.98%, and a net profit attributable to shareholders of 170 million yuan, a decrease of 8.81% [4] - The second quarter of 2024 saw a revenue of 4.173 billion yuan, a slight decline of 0.24%, and a net profit of 22 million yuan, down 53.78% [4] - The comparable store traffic increased by 13.69% due to improved product quality and price ratio, enhancing customer trust [4] - Online sales grew approximately 22% year-on-year, with online traffic increasing by 18.49% [4] Store Expansion and Strategy - The company opened 69 new stores during the reporting period, bringing the total number of stores to 1,097, including 997 directly operated stores and 100 franchise stores [4] - The company is implementing a strategy of "regional concentration and multi-format complementarity" to enhance the synergy between various retail formats [4]