OPPEIN(SH:603833) Guoxin Securities·2024-09-04 00:30Investment Rating - The investment rating for the company is "Outperform the Market" [1][3] Core Views - The company reported a revenue of 8.58 billion, down 12.8% year-on-year, and a net profit attributable to shareholders of 0.99 billion, down 12.6% year-on-year for H1 2024. The second quarter saw a revenue of 4.96 billion, down 20.9%, and a net profit of 0.77 billion, down 21.3% [1] - The company is strategically increasing investments in branding and e-commerce to drive customer traffic, despite facing short-term operational pressures due to weak real estate transactions and consumer spending [1] - The retail distribution segment experienced a significant decline, while direct sales, integrated solutions, and overseas markets showed steady growth, indicating the feasibility of the integrated home furnishing model [1] - E-commerce initiatives have yielded positive results, with online business growth exceeding 10% and a 10% increase in effective customer traffic [1] Financial Summary - For H1 2024, the revenue breakdown by segment showed a decline in retail distribution (-23%) and growth in integrated solutions (+9%) and direct sales (+17%) [1] - The company’s gross margin for Q2 2024 was 34.5%, an increase of 0.2 percentage points year-on-year, while the net profit margin was 15.6%, up 0.03 percentage points [1] - The company has adjusted its profit forecasts, expecting net profits of 2.73 billion, 2.97 billion, and 3.21 billion for 2024, 2025, and 2026 respectively, reflecting a year-on-year decline of 9.9% for 2024 [1][2]