weizhixiang(SH:605089) Guoyuan Securities·2024-09-04 00:31Investment Rating - The report maintains a "Buy" rating for the company, with an expected net profit of 0.94 billion, 1.00 billion, and 1.04 billion for the years 2024, 2025, and 2026 respectively, reflecting a year-on-year growth of -30.35%, 5.87%, and 4.36% [1][2][3] Core Insights - The company reported a total revenue of 3.27 billion for the first half of 2024, a decrease of 21.53% year-on-year, and a net profit attributable to the parent company of 0.42 billion, down 43.37% year-on-year [1] - In Q2 2024, total revenue was 1.61 billion, a decline of 24.94% year-on-year, with a net profit of 0.23 billion, down 40.12% year-on-year [1] - The retail/supermarket/wholesale/direct sales/other/e-commerce channels generated revenues of 2.20/0.15/0.84/0.04/0.01 billion respectively in H1 2024, with the retail channel showing a year-on-year growth of 19.98% [1] - The company has adjusted its franchise store numbers, with 1,778 franchise stores, 746 distribution stores, 94 supermarket clients, and 559 wholesale clients as of the end of H1 2024 [1] - The gross profit margin slightly declined, and the management expense ratio increased, leading to a decrease in net profit margin to 12.93%, down 4.98 percentage points year-on-year [1] Financial Summary - The company’s revenue for 2024 is projected at 648.65 million, with a year-on-year decrease of 18.83%, and a net profit of 94.32 million, reflecting a decline of 30.35% [2] - The return on equity (ROE) is expected to be 7.44% in 2024, down from 10.67% in 2023 [2] - The price-to-earnings (P/E) ratio is projected to be 25.84 for 2024, decreasing to 23.39 by 2026 [2][3]