Huangshanghuang(SZ:002695) Great Wall Securities·2024-09-04 00:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [12]. Core Views - The company has experienced a slowdown in store expansion and pressure on single-store revenue, with a focus on improving store quality [2]. - In H1 2024, the company reported revenue of 1.06 billion yuan, a year-on-year decrease of 7.53%, and a net profit attributable to shareholders of 61 million yuan, down 26.59% year-on-year [2]. - The company is optimizing its store structure through closures and relocations, indicating a potential short-term slowdown in store expansion [2]. - The gross margin has improved due to a decrease in raw material prices, with the overall gross margin reaching 32.43%, an increase of 4.71 percentage points year-on-year [2]. Financial Summary - For the fiscal year 2024E, the company is expected to achieve revenue of 1.922 billion yuan, with a slight growth of 0.1% year-on-year, and a net profit of 910 million yuan, representing a 29% increase year-on-year [2]. - The company's financial metrics show a projected P/E ratio of 50.4 for 2024E, decreasing to 32.1 by 2026E [7]. - The company has reduced its number of specialty stores to 4,052, with a net decrease of 445 stores since the beginning of the year [2].