Dongpeng Holdings(003012) 国泰君安·2024-09-09 07:07Investment Rating - The report maintains a rating of "Buy" for Dongpeng Holdings [4][9]. Core Views - The company's 2024 interim report shows revenue of 3.094 billion yuan, a year-on-year decrease of 14.72%, and a net profit attributable to shareholders of 211 million yuan, down 45.22% year-on-year. The results are in line with expectations, considering the high base effect [9]. - The report highlights that the integrated channel is showing advantages, while cost control measures are continuously being implemented [3][4]. - Due to weak demand expected in 2024, the earnings per share (EPS) forecasts for 2024-2026 have been revised down to 0.52, 0.56, and 0.64 yuan respectively [9][10]. Summary by Sections Financial Performance - For the first half of 2024, tile revenue was 2.579 billion yuan, down 17% year-on-year, while bathroom revenue was 437 million yuan, up 5.22% year-on-year. The retail channel is under pressure, but the integrated channel is performing strongly with a 15.8% year-on-year increase [9]. - The overall gross margin for the first half of 2024 was 30.58%, a decrease of 1.45 percentage points year-on-year. The gross margin for tiles was 31.96%, down 1.50 percentage points, and for bathrooms, it was 21.66%, down 2.19 percentage points [9][10]. Market Outlook - The report anticipates that the competitive landscape will continue to pressure profitability, with a focus on optimizing cost structures. The company has successfully reduced tile manufacturing costs by 3.60% year-on-year [9][10]. - The target price has been adjusted to 7.80 yuan, down from the previous forecast of 9.29 yuan, reflecting the anticipated market conditions [4][9]. Valuation Metrics - The report provides a comparison of valuation metrics with peer companies, indicating that Dongpeng Holdings is trading at a lower price-to-earnings (PE) ratio compared to its peers, suggesting potential undervaluation [12].