LSR(002858) 西南证券·2024-09-01 06:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.97 CNY over the next six months [1][8]. Core Insights - The company reported a revenue of 220 million CNY for H1 2024, representing a year-on-year growth of 22.8%. The net profit attributable to the parent company was 13.685 million CNY, up 15.6% year-on-year. The gross margin decreased to 27.3%, down 8.8 percentage points, while the net margin was 14.1%, down 3.1 percentage points [1][6]. - The revenue for Q2 2024 was 120 million CNY, showing a year-on-year increase of 32.5%, with a net profit of 2.12 million CNY, up 18.6% year-on-year [1][6]. - The company is expanding its event management business, with significant revenue growth attributed to the return of the FE event to Shanghai and the addition of the F4 Australia event. The event management revenue reached 150 million CNY, a 34.1% increase year-on-year [1][6]. - The company is also investing in a new project in Hainan for a new energy vehicle experience center, which is expected to enhance annual profits by over 50 million CNY upon completion [1][6]. Summary by Sections Financial Performance - H1 2024 revenue: 220 million CNY, up 22.8% YoY - H1 2024 net profit: 13.685 million CNY, up 15.6% YoY - Q2 2024 revenue: 120 million CNY, up 32.5% YoY - Q2 2024 net profit: 2.12 million CNY, up 18.6% YoY [1][6]. Business Segments - Event Management: Revenue of 150 million CNY, up 34.1% YoY, with a gross margin of 29.2% [1][6]. - Venue Operations: Revenue of 54.73 million CNY, up 28.9% YoY, with a gross margin of 19.9% [1][6]. - Marketing Services: Revenue of 10.007 million CNY, up 30.0% YoY, with a gross margin of 41.2%, an increase of 29.9 percentage points [1][6]. Future Outlook - The company expects to increase the number of domestic and international events, projecting revenue growth of 28.0%, 24.0%, and 21.0% for the event management segment from 2024 to 2026 [6][8]. - The return of F1 events to China is anticipated to boost attendance at the company's racetracks and karting venues, with projected revenue growth of 21.0%, 18.0%, and 15.0% for venue operations from 2024 to 2026 [6][8].