潮宏基：公司半年报点评

Investment Rating - The report assigns an "OUTPERFORM" rating to Guangdong Chj Industry with a target price of RMB 6.61 [1]. Core Insights - Guangdong Chj Industry reported a revenue of RMB 3.431 billion for H1 2024, representing a year-on-year increase of 14.15%. The net profit attributable to shareholders was RMB 229 million, up 10.04% year-on-year [1][9]. - In Q2 2024, the company achieved a revenue of RMB 1.635 billion, a 10.33% increase year-on-year, with a net profit of RMB 98 million, reflecting a 17% year-on-year growth [1][9]. - The company plans to distribute a cash dividend of RMB 1 per 10 shares to all shareholders [1][9]. Revenue Breakdown - The jewelry segment's revenue increased by 17% year-on-year in H1 2024, with a net addition of 52 jewelry stores [2][10]. - Proprietary trading revenue was RMB 1.725 billion, down 3.98% year-on-year, while franchise revenue rose to RMB 1.647 billion, up 43.66% year-on-year [2][10]. - As of June 30, 2024, the company had a total of 1,451 jewelry stores, with plans to increase franchise stores by over 300 in 2024 and reach 2,000 stores by 2025 [2][10]. Segment Performance - Fashion jewelry revenue was RMB 1.65 billion, up 5.97% year-on-year, while traditional gold jewelry revenue reached RMB 1.48 billion, up 31.37% year-on-year [2][10]. - The jewelry segment's net profit margin improved, with revenue of RMB 3.28 billion and a net profit of RMB 237 million, marking a 21.63% increase year-on-year [11]. Financial Metrics - The company updated its earnings forecast, projecting revenues of RMB 6.823 billion, RMB 7.802 billion, and RMB 8.769 billion for 2024-2026, with net profits of RMB 391 million, RMB 454 million, and RMB 514 million respectively [5][12]. - The gross profit margin for H1 2024 was 24.15%, down 2.75 percentage points year-on-year, attributed to changes in product mix [3][11]. - The period expense ratio decreased by 3.15 percentage points in Q2 2024, with total period expenses of RMB 230 million, down 10.04% year-on-year [3][11].