CBEST(600729) Guotai Junan Securities·2024-07-14 23:01Investment Rating - The report maintains a rating of "Buy" for the company, with a target price adjusted to 29.50 yuan, down from the previous 37.90 yuan [12][14]. Core Insights - The company's H1 performance was below expectations, leading to a downward revision of the EPS forecast for 2024-2026 to 2.95, 3.27, and 3.54 yuan, reflecting growth rates of 0%, 11%, and 8.1% respectively [10][11]. - The report highlights a significant decline in revenue and net profit, with H1 revenue at approximately 89.8 billion yuan, down 11.6%, and net profit at 7.12 billion yuan, down 21.1% [10][11]. - The company is expected to stabilize and recover in H2, driven by cost reduction measures and operational efficiency improvements [10][14]. Summary by Sections Financial Performance - H1 revenue was approximately 89.8 billion yuan, a decrease of 11.6%, with a net profit of 7.12 billion yuan, down 21.1% [10][11]. - The net profit margin for H1 was approximately 7.92%, a decline of 0.96 percentage points [10]. - The company anticipates a profit of 1.58 billion yuan in H2, representing a 30% increase compared to H1 [10]. Business Strategy - The company is focusing on enhancing operational efficiency and optimizing store and personnel structures [10][14]. - A new action plan for 2024 emphasizes quality improvement, efficiency enhancement, and shareholder returns [10][14]. - The company has opened its first fresh discount store, achieving daily sales of around 100,000 yuan, indicating a positive trend in new business ventures [10][14]. Market Position - The company operates in the retail and consumer goods sector, with a total market capitalization of 8.695 billion yuan [3]. - The stock has a current price of 19.48 yuan, with a price-to-earnings ratio of 6.61 [12][11]. - The report suggests that the company remains a valuable asset due to its low valuation and high dividend yield [10][14].