Wangfujing(SH:600859)2024-09-06 02:40Investment Rating - The report maintains a "Buy" rating for Wangfujing (600859), indicating an expected upside of over 20% based on the current stock price and future earnings projections [8]. Core Views - The company's performance in the first half of 2024 was below expectations, with total revenue of 6.035 billion yuan, a year-on-year decline of 5.4%, and a net profit attributable to shareholders of 293 million yuan, down 43.4% [8]. - The company is focusing on optimizing its store structure and operations, with a strong resilience in its outlet business and growth in the duty-free segment, supported by favorable policies [8]. - The company has decided to terminate its supermarket business to focus on more promising segments, with revenue from various business lines showing mixed results [8]. Financial Summary - Total revenue for 2023 was 12.224 billion yuan, with projections of 11.517 billion yuan for 2024, 12.134 billion yuan for 2025, and 13.594 billion yuan for 2026 [9]. - The net profit attributable to shareholders for 2023 was 709 million yuan, with forecasts of 749 million yuan for 2024, 860 million yuan for 2025, and 975 million yuan for 2026 [9]. - The company's gross margin is projected to decline from 41.8% in 2023 to 38.5% in 2024 and remain stable thereafter [8]. Business Developments - The company is actively optimizing its store structure and has several key projects underway, including new shopping centers set to open in 2024 [8]. - The duty-free business is expected to benefit from new policies effective October 1, 2024, which aim to promote the healthy development of city duty-free stores [8]. - The company is enhancing its e-commerce model, with increasing online traffic and user numbers, and is adjusting its product mix based on market demand [8].