红旗连锁：H1主业归母净利润增长6%，高密度便利超市经营稳健

Investment Rating - The investment rating for the company is "Add" (maintained) [1] Core Views - The company reported a 6% year-on-year growth in net profit attributable to shareholders in H1 2024, with revenues of 5.186 billion yuan, net profit of 267 million yuan, and net profit after deducting non-recurring items of 241 million yuan, reflecting year-on-year changes of +3.67%, +3.81%, and +0.21% respectively [2] - The company has a stable operation in high-density convenience supermarket management, with significant investment returns from Xinwang Bank [2] - The company has adjusted its store product structure and improved store renovations, completing upgrades for 202 stores and opening 16 new stores, totaling 3,655 stores by June 30, 2024 [2] Financial Summary - For H1 2024, the company's gross margin was 28.98%, and net margin was 5.14%, with a slight decrease in gross margin by 0.37 percentage points year-on-year, while net margin remained stable [2] - The company expects EPS for 2024-2026 to be 0.43, 0.46, and 0.49 yuan respectively, with corresponding PE ratios of 9.7, 9.2, and 8.6 [2][3] - The total assets of the company are projected to grow from 8,110 million yuan in 2023 to 9,639 million yuan in 2026, with a steady increase in net profit from 561 million yuan in 2023 to 663 million yuan in 2026 [3][4]