FLYCO(603868) 华创证券·2024-09-05 16:08Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 43 yuan, while the current price is 35.39 yuan [1]. Core Views - The company is experiencing short-term pressure on scale and profitability due to a transition in its dual-brand strategy and consumer spending pressures. The revenue for the first half of 2024 is 2.32 billion yuan, down 13.3% year-on-year, with a net profit of 320 million yuan, down 48.1% year-on-year [1][2]. - The dual-brand strategy is clearly defined, with Feike focusing on high-end products and Borui targeting high-quality cost-effective products. Despite short-term challenges, the company expects recovery in scale in the future [2]. - The company is actively expanding its offline retail presence and has made significant progress in overseas market planning, particularly in Southeast Asia [2]. Financial Summary - For the first half of 2024, Borui achieved revenue of 501 million yuan, a year-on-year increase of 35.9%, while Feike's revenue was 902 million yuan, down 19.0% year-on-year [2]. - The gross profit margin for Q2 2024 was 54.1%, a decrease of 5.7 percentage points year-on-year, primarily due to Borui's lower margin compared to Feike [2]. - The company has adjusted its net profit forecasts for 2024, 2025, and 2026 to 710 million yuan, 890 million yuan, and 1 billion yuan respectively, with corresponding P/E ratios of 22, 17, and 15 times [2][3].