Dingdong(DDL) 国泰君安·2024-08-11 03:28Investment Rating - The report assigns an "Accumulate" rating for the company Dingdong Maicai (DDL.N) [2][10]. Core Insights - The company's performance is in line with expectations, benefiting from an improved competitive landscape and enhanced profitability, particularly in the core Jiangsu and Zhejiang markets, leading to a resumption of expansion based on profitability [5]. - Dingdong Maicai reported a revenue of 5.599 billion RMB, representing a year-on-year increase of 15.67%, and an adjusted net profit of 105 million RMB for Q2 2024, compared to 5.41 million RMB in Q2 2023 [5]. - The company's Gross Merchandise Volume (GMV) for Q2 2024 reached 6.219 billion RMB, marking a 16.79% increase [5]. Summary by Sections Financial Performance - Revenue for 2024E is projected at 22.292 billion RMB, with a growth rate of 11.62% compared to the previous year [6]. - The adjusted net profit is expected to improve significantly, reaching 340.95 million RMB in 2024E, with a net profit margin of 1.53% [6]. Market Dynamics - The company has restarted its expansion in the Jiangsu and Zhejiang regions, opening 25 new warehouses in Q2 2024 and a total of 40 in the first half of 2024, with expectations for further increases in the number of new warehouses throughout the year [5]. - The growth in revenue and GMV is driven by the expansion in the Jiangsu and Zhejiang regions, increased average revenue per user (ARPU) in Shanghai, and growth in leisure product categories [5]. Strategic Focus - Dingdong Maicai is focusing on achieving profitable growth while enhancing user engagement and marketing investments, which may temporarily impact gross and profit margins but is seen as beneficial for long-term shareholder returns [5].