EASYHOME(SZ:000785) Huachuang Securities·2024-09-18 09:09Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 3.13 CNY per share, while the current price is 2.28 CNY [1]. Core Views - The home furnishing business shows steady performance with continuous optimization of expense ratios. The company is focusing on transforming its home furnishing market into smart home experience centers, which is expected to enhance its recruitment rate [2]. - The shopping center business has seen significant revenue growth, achieving 1.27 billion CNY in H1 2024, a year-on-year increase of 193.7% [2]. - The digital transformation is progressing steadily, with strategic partnerships established with Huawei and Volcano Engine, contributing to improved performance in the smart home segment [2]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 6.35 billion CNY, a slight decrease of 0.9% year-on-year, and a net profit attributable to shareholders of 600 million CNY, down 30.4% year-on-year [2]. - The gross profit margin for H1 2024 was 33.3%, a decrease of 3.9 percentage points compared to the previous year [2]. Business Segments - Retail Business: Revenue from leasing and management, product sales, franchise management, renovation, and loan factoring interest were 3.03 billion CNY, 2.80 billion CNY, 210 million CNY, 120 million CNY, and 20 million CNY respectively, with notable declines in leasing and management due to rent reductions for qualified merchants [2]. - Shopping Center Business: Revenue reached 1.27 billion CNY, with a customer flow of 20.44 million, reflecting a year-on-year increase of 156.3% [2]. - Digital Business: The company’s digital platform, Dongwo, achieved a GMV of 46.6 billion CNY, up 11.8% year-on-year, and the registered users of "Jiaju Design" exceeded 16.16 million, a growth of 19% [2]. Future Outlook - The company has adjusted its net profit forecasts for 2024-2026 to 1.23 billion CNY, 1.34 billion CNY, and 1.46 billion CNY respectively, reflecting a cautious outlook due to ongoing pressure in downstream demand [2][3]. - The projected PE ratios for 2024, 2025, and 2026 are 12, 11, and 10 times respectively, with a target PE of 16 times for 2024 [2].