LFX(600612) 华创证券·2024-09-18 09:39Investment Rating - Strong Buy (Maintained) with a target price of 63.70 CNY, compared to the current price of 50.24 CNY [1] Core Views - The company achieved revenue/attributable net profit/non-GAAP attributable net profit of 39.96/1.40/1.46 billion CNY in H1 2024, with year-on-year changes of -1.0%/+10.3%/+12.9% respectively [1] - In Q2 2024, the company achieved revenue/attributable net profit/non-GAAP attributable net profit of 14.33/0.60/0.62 billion CNY, with year-on-year changes of -9.2%/+8.1%/+11.8% respectively [1] - The company's gross margin increased to 9.2% in H1 2024, up by 0.7 percentage points year-on-year, driven by rising gold prices [1] - The company's net profit margin reached 3.5% in H1 2024, up by 0.4 percentage points year-on-year [1] - The company's marketing network expanded to 6,022 stores (including 15 overseas stores) by Q2 2024, a net increase of 28 stores compared to the end of 2023 [1] Financial Performance - Revenue from domestic/overseas markets in H1 2024 was 39.53/0.278 billion CNY, with year-on-year changes of -1.1%/+4.8% respectively [1] - Revenue from jewelry/gold trading/pen/art product sales in H1 2024 was 34.196/5.482/0.107/0.015 billion CNY, with year-on-year changes of -4.0%/+26.0%/+9.9%/-78.4% respectively [1] - The company's sales/management/financial expense ratios in H1 2024 were 1.3%/0.7%/0.2%, with year-on-year changes of -0.1/+0.1/-0.04 percentage points respectively [1] Strategic Initiatives - The company is actively promoting brand upgrades with themes such as "Chinese culture, Chinese style, and Chinese charm" [1] - The company has launched new themed stores, including "Fengxiang Xishi" in the Yangtze River Delta region and a flagship store in Hubei Province [1] - The company is implementing a comprehensive reform plan, including the selection of professional managers for 13 subsidiaries, to optimize management and drive high-quality development [1] Financial Forecasts - The company's revenue is expected to reach 75.692/82.886/88.945 billion CNY in 2024E/2025E/2026E, with year-on-year growth rates of 6.0%/9.5%/7.3% respectively [2] - The company's attributable net profit is expected to reach 2.380/2.703/2.991 billion CNY in 2024E/2025E/2026E, with year-on-year growth rates of 7.5%/13.6%/10.7% respectively [2] - The company's EPS is expected to be 4.55/5.17/5.72 CNY in 2024E/2025E/2026E, with P/E ratios of 11/10/9X respectively [2] Valuation - The company's P/B ratios are expected to be 2.0/1.8/1.6X in 2024E/2025E/2026E respectively [2] - The company's EV/EBITDA ratios are expected to be 8/7/6X in 2024E/2025E/2026E respectively [7]