DSL(603233) 东方证券·2024-09-09 13:40Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.12 yuan, based on a PE valuation of 16X for 2024 [3][4]. Core Insights - The company achieved a revenue of 13.345 billion yuan in H1 2024, representing a year-on-year growth of 11.29%, driven by same-store sales growth and contributions from new stores and industry acquisitions. However, the net profit attributable to shareholders decreased by 28.32% to 658 million yuan due to declining consumer spending and an increase in sales expense ratio [2][3]. - The company is actively expanding through self-built stores, acquisitions, and franchising, with a focus on integrating online and offline operations. In H1 2024, retail business revenue was 11.065 billion yuan, accounting for 82.9% of total revenue, while franchise and distribution revenue grew by 33.85% to 1.973 billion yuan [2][3]. - The company continues to expand its store network, adding 797 self-built stores and 1,214 franchise stores in H1 2024, bringing the total number of stores to 16,151 [2][3]. Financial Summary - The company forecasts net profits of 1.214 billion yuan, 1.488 billion yuan, and 1.789 billion yuan for 2024, 2025, and 2026 respectively, with a downward revision from previous estimates [3][6]. - Revenue projections for 2024-2026 are set at 28.299 billion yuan, 34.133 billion yuan, and 40.977 billion yuan, reflecting a growth rate of 15.4% in 2024 [6][9]. - The gross margin is expected to decline to 35.1% in 2024, with net profit margin projected at 4.3% [6][9].