Tianfeng Securities·2024-09-04 06:09Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [5][14]. Core Insights - The company's revenue for the first half of 2024 (24H1) was 31.3 billion yuan, a year-on-year decrease of 12.8%, while the net profit attributable to shareholders was 3.28 billion yuan, down 15.1% year-on-year. However, the gross margin improved to 33.5%, an increase of 2.92 percentage points year-on-year [1][2]. - The company faced challenges in the Hainan region due to weak sales in offshore duty-free shopping, but the overall revenue decline was mitigated by steady growth in the Shanghai duty-free store [2][3]. - The implementation of new city duty-free policies is expected to benefit the company, enhancing domestic consumption and potentially increasing sales [3]. Financial Performance Summary - For 24H1, the company's gross margin was 33.5%, with a net profit margin of 10.5%. The second quarter (24Q2) saw a revenue of 12.5 billion yuan, down 17.4% year-on-year, with a net profit of 980 million yuan, down 37.6% year-on-year [1][2]. - The report projects revenue for 2024 to be 64.7 billion yuan, with net profit expected to be 6.5 billion yuan. This is a downward revision from previous forecasts due to lower-than-expected performance in 2023 and ongoing challenges in Hainan [3][9]. Market Position and Strategy - The company is recognized as a leading duty-free operator with strong channel capabilities and brand strength. The new city duty-free policies are anticipated to provide additional growth opportunities [3][5]. - The report highlights the importance of optimizing product sales structure and pricing strategies, which have contributed to the improvement in gross margins despite overall revenue challenges [1][2].