Semir(SZ:002563) Huachuang Securities·2024-09-18 06:12Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 5.57 CNY per share, compared to the current price of 4.50 CNY [1]. Core Insights - The company reported a revenue of 5.5 billion CNY and a net profit of 5.4 billion CNY for the first half of 2024, reflecting a year-on-year growth of 7.1% in both metrics. The second quarter alone saw a revenue of 2.1 billion CNY, with a net profit of 2.0 billion CNY, marking a 10.1% increase in revenue year-on-year [1]. - The children's clothing segment showed stable performance, while casual wear returned to a growth trajectory. The company is advancing its digital operations and personnel development, transitioning towards a retail-oriented organization [1]. - The company has implemented channel adjustments, leading to improved efficiency in offline channels. Online, direct, franchise, and joint venture channels generated revenues of 2.69 billion CNY, 700 million CNY, 2.4 billion CNY, and 90 million CNY respectively, with year-on-year growth rates of 3.4%, 5.0%, 11.8%, and 0.3% [1]. - Profitability continues to improve, with a gross margin of 45.5% in the second quarter, up 0.6 percentage points year-on-year, primarily due to improved sales discounts and supply chain management [1]. - The company has seen a decrease in inventory levels, with inventory turnover days reduced by 48 days to 159 days, indicating a significant reduction in inventory pressure [1]. Financial Summary - For 2024, the company is projected to achieve a total revenue of 14.689 billion CNY, with a net profit of 1.25 billion CNY, reflecting a year-on-year growth of 11.5% [2]. - The earnings per share (EPS) is expected to be 0.46 CNY for 2024, with a price-to-earnings (P/E) ratio of 10 [2]. - The company's total assets are estimated to reach 19.077 billion CNY by 2024, with a debt-to-asset ratio of 32.62% [3].