M&G(SH:603899) Huachuang Securities·2024-09-19 03:10Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 37.9 CNY per share, compared to the current price of 25.28 CNY [2]. Core Views - The company achieved stable revenue growth in the first half of 2024, with total revenue of 11.05 billion CNY, a year-on-year increase of 10.9%. The net profit attributable to shareholders was 630 million CNY, up 4.7% year-on-year [2]. - The traditional core business showed steady growth, while online channels continued to experience high growth rates. The company is focusing on product development and enhancing the quality of offline stores [2]. - The retail segment, particularly the Morningside Life Hall, has been performing well, with revenue growth of 20% year-on-year [2]. - The company is also expanding its overseas market presence, achieving 480 million CNY in revenue from international markets, a 14.8% increase year-on-year [2]. - The gross profit margin remained stable, while the expense ratio saw a slight increase, leading to a net profit margin of 4.5% in Q2 2024 [2]. Financial Summary - Total revenue for 2023 is projected at 23.35 billion CNY, with a year-on-year growth rate of 16.8%. The net profit is expected to be 1.527 billion CNY, reflecting a growth rate of 19.1% [3]. - The company forecasts a net profit of 1.692 billion CNY in 2024, with a growth rate of 10.8% [3]. - The earnings per share (EPS) is projected to be 1.83 CNY in 2024, with a price-to-earnings (P/E) ratio of 14 [3].