Q2 Revenue and net profit both improved markedly year over month. On the revenue side, 2024Q2, the company achieved total GTV transactions of 839 billion yuan, +7% YoY, +33% month-on-month; operating revenue of 23.4 billion yuan, +20% YoY and +43% month-on-month, of which the new track business maintained 35% of revenue. On the profit side, 2024Q2, the company achieved net profit of 1.9 billion yuan, second only to 2023Q1, +45% year over month, and +338% month on month; adjusted net profit of 2.7 billion yuan to mother was also the second highest in history, +13% year over year and +93 month over month. 2024Q2, the company adjusted the net interest rate to mother of 11.5%, contributing 33% to profit margin, 28% gross profit margin, and improving all operating costs and rates from month to month.
The stock housing business benefited from positive changes in real estate policies and picked up rapidly. 2024Q2, the company's stock housing business GTV was 570.7 billion yuan, +25% year over month, +26% month over month; stock housing business revenue was 7.3 billion yuan, +14% year over month, and +28% month over month. 2024Q2, the monetization rate of the company's stock housing business was 1.29%. On the one hand, the year-on-year decline was due to structural factors, and on the other hand, chain companies lowered their stock housing commission rates in Beijing in September 2023, and the impact on the base figure will subside later; the stock housing business contributed 47.5% to the profit margin, improving month-on-month.
The decline in revenue from the new housing business has narrowed markedly, and payment security has improved. 2024Q2, the company's new housing business achieved a total GTV transaction volume of 235.3 billion yuan, a significant contraction of -20% year-on-year, +55% month-on-month, GTV's market share 10.3%, an increase of 2 percentage points over Q1; revenue from the new housing business was 7.9 billion yuan, -9% year-on-year, and +61% month-on-month.
2024Q2, the company's monetization rate for new homes was 3.37%, another record high; contributing 25% to profit margin, improving month-on-month. Furthermore, the repayment security of the new housing business has improved markedly. With 2024Q2, the company's new housing receivables turnover days was 45 days, down 24 days from month to month, reaching a record low.
The new racetrack business maintained a good growth momentum. 2024Q2, home improvement and home furnishing business revenue was 4 billion yuan, +54% year over month, monetization rate 96%, contributing profit margin 31%; housing rental service revenue of 3.2 billion yuan, +167% year over year, +21% month on month, contributing 6% profit margin; excluding home improvement and leasing, revenue from other emerging businesses was 0.9 billion yuan, +58% year over month, +25% month-on-month, contributing 90% profit margin.
Investment advice: The company's net revenue and profit improved in the second quarter compared to the same period last month, demonstrating the resilience of industry leaders. However, considering the overall operation of the Chinese real estate market, we have slightly lowered the company's previous profit forecast. We expect the company's adjusted net profit for 2024-2025 to be 9/9.2 billion yuan (previous value 9.8/9.9 billion yuan), with earnings per share of 2.46/2.51 yuan, respectively. Corresponding to the current stock price PE is 14.1/13.8 times, respectively, maintaining the “superior to the market” rating.
Risk warning: If the housing industry fluctuates due to factors such as a slowdown in economic growth, a decline in residents' income expectations, policy relaxation falling short of expectations, and the impact of credit risk incidents on housing enterprises, the company's operations will be adversely affected.