OPPEIN(603833) 华创证券·2024-09-11 04:37Investment Rating - Strong Buy (Maintained) with a target price of 54.9 RMB [1] Core Views - The company's strategic direction is clear, focusing on cost reduction and efficiency improvement to enhance profitability [1] - Despite macroeconomic pressures, the company is steadily advancing its "Whole Home" strategy, with direct sales channel revenue increasing by 17% YoY [1] - The company is optimizing its product matrix and reducing the burden on dealers to boost sales [1] - The report forecasts the company's net profit attributable to the parent company for 2024-2026 to be 2.787/3.012/3.244 billion RMB, with a current PE ratio of 9/8/8X [1] Financial Performance Summary - In H1 2024, the company achieved revenue/net profit attributable to the parent company/adjusted net profit of 8.58/0.99/0.78 billion RMB, down 12.8%/12.6%/27.5% YoY [1] - In Q2 2024, revenue/net profit attributable to the parent company/adjusted net profit was 4.96/0.77/0.63 billion RMB, down 20.9%/21.3%/32.7% YoY [1] - Gross profit margin and net profit margin in H1 2024 were 32.6% and 11.5%, up 1.1 and 0.03 percentage points YoY, respectively [1] Product and Channel Performance - Revenue from kitchen cabinets/wardrobes and furniture/bathroom/wooden doors in H1 2024 was 2.56/4.42/0.5/0.5 billion RMB, down 16.8%/18.6%/up 9.3%/down 13.6% YoY [1] - Revenue from direct sales/distributors/bulk sales in H1 2024 was 0.33/6.4/1.5 billion RMB, up 17.3%/down 17.6%/up 1.0% YoY [1] - The number of effective retail "Whole Home" stores exceeded 850 by H1 2024, an increase of over 200 from the beginning of the year [1] Cost and Expense Management - Sales/management/financial expense ratios in H1 2024 were 11.4%/7.0%/-1.3%, up 2.4/0.6/0.6 percentage points YoY [1] - The increase in sales expense ratio was mainly due to strategic investments in brand promotion, e-commerce traffic, and market training [1] Future Outlook - The company is expected to maintain its leading position in the custom home industry, with potential for market share growth [1] - The report forecasts revenue growth rates for 2024-2026 to be -8.8%/7.2%/6.7%, with net profit growth rates of -8.2%/8.1%/7.7% [2] - The company's PE ratio for 2024-2026 is projected to be 9/8/8X, with a target price of 54.9 RMB based on a 12X PE ratio for 2024 [1]