Vatti(SZ:002035) ZHESHANG SECURITIES·2024-09-04 00:03Investment Rating - The investment rating for the company is "Buy" [4][7]. Core Views - The company's performance in H1 2024 met expectations, with revenue growth leading the industry. The company achieved a revenue of 3.1 billion yuan, a year-on-year increase of 7.7%, and a net profit attributable to shareholders of 300 million yuan, up 14.8% year-on-year [1][2]. - The revenue growth was driven by strong performance in offline and overseas channels, with offline revenue increasing by 20.8% to 1.585 billion yuan and overseas revenue rising by 35.29% to 379 million yuan [2]. - Profitability slightly improved due to optimized sales expense ratios and reduced credit impairment losses, with a net profit margin of 10.2% in Q2 [3]. Financial Summary - The company forecasts net profits of 580 million yuan, 670 million yuan, and 760 million yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 30.3%, 14.1%, and 13.9% [4][8]. - The projected P/E ratios for the next three years are 9X, 8X, and 7X, indicating a favorable valuation [4][8]. - The company’s revenue is expected to grow at a CAGR of approximately 6.8% from 2024 to 2026 [8].