Zhejiang Natural Outdoor Goods (605080) KAIYUAN SECURITIES·2024-09-03 17:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a significant improvement in profitability, with H1 revenue reaching 600 million yuan, a year-on-year increase of 13.18%. However, the net profit attributable to shareholders decreased by 16.42% to 101 million yuan due to increased net losses from fair value changes and reduced exchange gains [3][5] - The company is expected to see a turning point in profitability in 2024, supported by its vertical integration competitive advantage [3] Financial Performance Summary - H1 2024 revenue was 600 million yuan, with a net profit of 101 million yuan. The net profit decline was primarily due to a fair value loss of 44.14 million yuan and a 76.5% decrease in exchange gains [3] - The company's gross margin and net profit margin for H1 2024 were 37.2% and 16.78%, respectively, showing a year-on-year increase of 1.5 percentage points and a decrease of 5.9 percentage points [3] - The company expects to maintain its profit forecast, projecting net profits of 170 million yuan, 220 million yuan, and 250 million yuan for 2024, 2025, and 2026, respectively [3][5] Segment Performance - The domestic sales growth has slightly declined, while external sales have recovered. The company anticipates continued growth in inflatable mattress sales in H2 2024 [3] - The overseas subsidiaries, particularly in Cambodia and Vietnam, have shown significant revenue growth, with Cambodia's revenue increasing by 48% in H1 2024 [3] Cash Flow and Operational Efficiency - The net cash flow from operating activities for H1 2024 was 66 million yuan, an increase of 11.8% [3] - As of H1 2024, inventory stood at 199 million yuan, up 24.8%, with inventory turnover days reduced by 11 days to 99 days [3]