1）营收方面，23H1 收入yoy-3.6%，主要系转让浙江上佰股权，不再纳入合并范围所致。公司在保证核心存量客户基本稳定的基础上新增包括斯维诗、林清轩、Linefriends、高洁丝等16 个品牌。同时公司新增与英国著名日化品牌倍洁丽、意大利知名饮品品牌illy 及美国头部口腔护理品牌洁碧的总代业务，品牌进一步向头部服务商集中、公司全域服务能力不断增强的趋势明显。Incidents:
The company released its 2023 mid-year report. 2023H1 achieved revenue of 610 million yuan, yoy -3.62%; net profit of 87 million yuan, yoy -17.15%, net return interest rate of 14.27%, same decrease of 2.33 pct; net profit after deducting non-return net profit of 82 million yuan, yoy -14.59%, net interest rate of 13.48%, minus 1.73 pct.
Financial highlights:
1) In terms of revenue, 23H1's revenue is yoy -3.6%, mainly due to the transfer of shares in Zhejiang Shangbai, which is no longer included in the scope of the merger. On the basis of ensuring the basic stability of its core customer base, the company added 16 brands, including Swissy, Lin Qingxuan, Linefriends, and Gauges. At the same time, the company added general business with the famous British daily chemical brand Bejieli, the famous Italian drink brand illy, and the leading American oral care brand Jiebi. There is a clear trend of further concentration of brands on leading service providers and the continuous improvement of the company's global service capabilities.
2) In terms of profit, 23H1's net profit was yoy -17.15%, mainly due to the company's newly built building being put into use, and depreciation and amortization increased by about 13 million over the same period last year; at the same time, it was affected by Zhejiang Shangbai no longer being included in the scope of the merger.
3) On the cost side, 2023H1's gross profit margin was 32.32%, a decrease of 7.15 pct, mainly due to: ① The impact of weak consumption on inventory projects continues. Although the cost of related investment has increased, it still has not fully countered the declining sales trend, resulting in a decline in gross margin in the stock business; ② the share of online marketing services for the company's brand has increased.
4) On the cost side, 2023H1's sales expenses were 74 million yuan, with a sales expense ratio of 12.08%, an increase of 0.96 pct, mainly due to an increase in the share of online distribution service business and online brand marketing business; management expenses of 41 million yuan, management expense ratio of 6.73%, a decrease of 0.78 pct; R&D expenses of 190 million yuan, yoy -59.43%.
5) In terms of cash flow, 2023H1's net operating cash flow was 5.6 million yuan, an increase of 114.0% over the same period, mainly due to the recovery of advance payments made in advance.
Investment advice:
In the context of the gradual recovery of the macroeconomic environment in the market and the gradual recovery of consumer demand, the company actively responds to market changes, optimizes market brand strategies, expands and perfects offline sales teams, and enhances online and offline integration capabilities; the number of service brands has steadily increased, the general agent business continues to expand, 16 brands and multiple brands have been added to the general service business, and the company's global service capacity continues to increase.
The previous value of Gimu's net profit of 23/24 was 44/53 million yuan. As the company actively adjusted and optimized strategies, the development momentum increased further. However, due to the company's transfer of Zhejiang Shangbai shares, the corresponding revenue decreased. It is estimated that 2023/2024/2025, Gimu's net profit will be 2.7/31/360 million yuan. The current market capitalization corresponding to PE is 23/20/17X, maintaining the “increase in holdings” rating.
