Dingdong(DDL) 国泰君安·2024-08-11 05:01Investment Rating - The investment rating for the company is "Buy" [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, where expansion based on profitability has resumed [5]. - In Q2 2024, the company achieved revenue of 5.599 billion RMB, representing a year-on-year increase of 15.67%, and an adjusted net profit of 105 million RMB, compared to 5.41 million RMB in Q2 2023. The GMV for Q2 2024 was 6.219 billion RMB, up 16.79% [5]. - The company has restarted regional expansion, opening 25 new warehouses in Q2 2024, with a total of 40 opened in the first half of 2024, indicating a positive trend in growth and scale effects [5]. Financial Summary - Revenue for the company has shown significant growth over the years, with a forecasted revenue of 22.29 billion RMB for 2024, up from 19.97 billion RMB in 2023, marking an increase of 11.62% [6]. - The adjusted net profit is expected to improve to 340.95 million RMB in 2024, compared to 36.73 million RMB in 2023, indicating a recovery in profitability [6]. - The gross profit margin has slightly decreased by 1 percentage point year-on-year, while the marketing expense ratio has increased by 0.48 percentage points, reflecting the company's strategy to support expansion through user incentives and marketing investments [5].