M&G(SH:603899) Changjiang Securities·2024-09-03 08:21Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a revenue of 11.05 billion yuan and a net profit attributable to shareholders of 633 million yuan in H1 2024, representing a year-on-year increase of 11% and 5% respectively [6]. - The traditional core business saw a steady revenue growth and an improvement in net profit margin, with H1 2024 revenue growing by 6.6% and Q2 2024 revenue increasing by 3.6% [6]. - The company is expected to achieve net profits of 1.687 billion yuan, 1.932 billion yuan, and 2.146 billion yuan for the years 2024, 2025, and 2026 respectively, corresponding to PE ratios of 15, 13, and 12 [7]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 11.05 billion yuan, a net profit of 633 million yuan, and a net profit excluding non-recurring items of 567 million yuan, with year-on-year growth of 11%, 5%, and 5% respectively [6]. - Q2 2024 figures showed revenue of 5.566 billion yuan, a net profit of 253 million yuan, and a net profit excluding non-recurring items of 240 million yuan, with year-on-year changes of +10%, -7%, and -3% [6]. Business Segments - Traditional business (excluding Morningside Technology) experienced steady revenue growth in Q2, with a year-on-year revenue increase of 13% in writing tools and a gross margin of 42.28% [6]. - Morningside Technology continued to show high revenue growth, with H1 2024 revenue increasing by 28.7% and Q2 2024 revenue by 24.7% [6]. - The retail segment, particularly the Jiwu Miscellaneous Store, saw a revenue increase of 21.3% in H1 2024, with plans to open over 100 new stores in the year [7]. Future Outlook - The company is expected to maintain a balanced growth trajectory across multiple business lines, supported by a strategy focused on "omni-channel + product focus & collaboration" [7]. - The projected net profit for 2024-2026 indicates a positive growth trend, with expectations of continued revenue and profit increases [7].