Vatti(002035) 华创证券·2024-09-02 06:13Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 8 CNY, compared to the current price of 6.23 CNY [1]. Core Insights - The company achieved a total revenue of 3.1 billion CNY in H1 2024, representing a year-on-year increase of 7.7%, and a net profit attributable to shareholders of 300 million CNY, up 14.8% year-on-year [1]. - In Q2 2024, the company reported revenue of 1.72 billion CNY, a 2.1% increase year-on-year, and a net profit of 180 million CNY, up 4.0% year-on-year [1]. - The company outperformed the overall kitchen appliance industry, which faced demand pressure, with retail volume growth of 0.5% and retail value decline of 2.3% in H1 2024 [1]. - The company's traditional product categories, such as range hoods, stoves, and water heaters, saw revenue growth of 14.6%, 3.2%, and 24.7% respectively, accounting for 86.2% of total revenue [1]. - The company has successfully optimized its offline channels, with a 20.8% year-on-year increase in offline channel revenue and a 41.4% increase in lower-tier channel revenue [1]. - The company's gross margin in Q2 2024 was 39.7%, a decrease of 2.8 percentage points year-on-year, attributed to a shift towards lower-margin products [1]. - The company has expanded its new retail store count by over 3,000 and has more than 20,000 stores in lower-tier channels, contributing to revenue growth [1]. - The implementation of the "old for new" appliance policy is expected to benefit the company, particularly in the categories of range hoods, gas stoves, and water heaters [1]. Financial Summary - The company forecasts total revenue of 6.581 billion CNY for 2024, with a year-on-year growth rate of 5.6% [2]. - The net profit attributable to shareholders is projected to be 585 million CNY in 2024, reflecting a year-on-year growth of 30.8% [2]. - The earnings per share (EPS) is expected to be 0.69 CNY for 2024, with a price-to-earnings (P/E) ratio of 9 times [2]. - The company's total assets are estimated to be 7.704 billion CNY in 2024, with a debt-to-asset ratio of 46.31% [3].