TongQingLou Catering (SH:605108)2024-09-03 06:16Investment Rating - The report maintains an "Accumulate" rating for the company [1][2]. Core Views - The company reported a revenue of RMB 1.271 billion for H1 2024, representing a year-on-year growth of 17.5%. However, the net profit attributable to shareholders decreased by 44.4% to RMB 80.9476 million, primarily due to high base effects from the previous year and significant upfront costs associated with new store openings [2]. - The company is focusing on a three-pronged business development strategy involving restaurant, hotel, and food services, which is expected to create multiple growth trajectories [2]. - The company opened 5 new stores in H1 2024, with plans for an additional 4-6 stores in the second half of the year, indicating ongoing expansion despite current losses from new store operations [2]. Summary by Sections Financial Performance - H1 2024 revenue: RMB 1.271 billion, up 17.5% YoY - H1 2024 net profit: RMB 80.9476 million, down 44.4% YoY - H1 2024 net profit excluding non-recurring items: RMB 75.6427 million, down 27.96% YoY [2][3]. Business Strategy - The company operates 118 stores, including 54 restaurants, 7 hotels, and 57 new brand outlets. The strategy emphasizes leveraging the cultural heritage of its restaurant brand while expanding its hotel and food service offerings [2]. - The hotel segment is expected to see 10 new openings by the end of 2024, with a focus on achieving operational maturity by 2025 [2]. Future Projections - EPS forecasts for 2024-2026 are RMB 1.18, RMB 1.49, and RMB 1.84, respectively, with corresponding P/E ratios of 13.7, 10.8, and 8.8 [3][4]. - Revenue projections for 2024-2026 are RMB 2.861 billion, RMB 3.333 billion, and RMB 3.815 billion, with growth rates of 19.1%, 16.5%, and 14.5% respectively [3][4].