LANCY(002612) 广发证券·2024-09-17 09:09Investment Rating - The investment rating for the company is "Buy" [3]. Core Views - The company reported a revenue of 2.689 billion yuan for H1 2024, representing a year-on-year increase of 6.21%. The net profit attributable to shareholders was 152 million yuan, up 1.14% year-on-year, while the net profit excluding non-recurring items was 140 million yuan, an increase of 11.49% year-on-year. The gross margin was 59.78%, up 0.71 percentage points year-on-year, and the net margin was 6.21%, up 0.01 percentage points year-on-year [1]. - The women's wear business performed well, achieving a revenue of 1.012 billion yuan in H1 2024, a year-on-year increase of 11.41%, with a gross margin of 64.29%, up 1.94 percentage points year-on-year. The company had 554 women's wear stores at the end of the period, a decrease of 45 stores from the end of 2023 [1]. - The medical beauty business showed steady growth, with a revenue of 1.194 billion yuan in H1 2024, a year-on-year increase of 6.02%, and a gross margin of 54.23%, down 0.70 percentage points year-on-year. The company had 38 medical beauty stores at the end of the period [1]. - The children's wear business saw a slight decline, with revenue of 450 million yuan in H1 2024, down 4.13% year-on-year, but with a gross margin of 63.52%, up 1.80 percentage points year-on-year [1]. - The company plans to acquire 100% equity of Beijing Lido for 330 million yuan and 70% equity of Hunan Yamei for 252 million yuan, continuing to expand its medical beauty business [1]. - Earnings per share (EPS) are projected to be 0.65 yuan, 0.79 yuan, and 0.93 yuan for 2024, 2025, and 2026, respectively. The company's fair value is estimated at 19.90 yuan per share, corresponding to a 30x price-to-earnings ratio for 2024 [1]. Financial Summary - For H1 2024, the company achieved a revenue of 2.689 billion yuan, with a year-on-year growth of 6.21% [1]. - The gross margin for H1 2024 was 59.78%, reflecting a slight improvement from the previous year [1]. - The company maintained good cost control, with selling, general and administrative expenses as a percentage of revenue at 40.32%, 7.99%, 2.02%, and 1.84%, respectively, showing a decrease compared to the previous year [1]. - The projected revenue for 2024 is 5.974 billion yuan, with a growth rate of 16.1% [2].