Event: according to the company's semi-annual report, 23H1 achieved operating income of 2.07 billion yuan, down 10.2% from the same period last year; realized net profit of-60 million yuan, an increase of 37.5% over the same period last year, and net interest rate of-3.0%, an increase of 1.3%; realized deduction of non-return net profit of-80 million yuan, an increase of 36.0% over the same period last year, deducting non-return net interest rate of-4.0%, and increasing 1.6pct. In a single quarter, 23Q2 realized operating income of 1.26 billion yuan, an increase of 3.5% over the same period last year, realized net profit of 30 million yuan and net interest rate of 2.5%, and deducted 20 million yuan of non-return net profit and 1.8% of non-return net interest rate. The net profit in a single quarter has become positive, which is more obvious than that of last year.
23H1's comprehensive gross profit margin is 34.1%, with an increase of 1.0pct. The rate of expenses during the period is 38.3%, which is the same as minus 1.0pct. Among them, the sales / management / R & D / financial expense rate is 25.4%, 7.7%, 3.7%, 1.5%, respectively, with a year-on-year change-1.3pct/+0.3pct/+0.02pct/-0.1pct. 23Q2's comprehensive gross profit margin is 36.1%, which is the same as that of 1.7pct. The rate of expenses during the period is 33.4%, which is the same as minus 1.7pct. Among them, the rate of sales / management / R & D / financial expenses is 22.0%, 7.1%, 3.1%, 1.2%, respectively, a year-on-year change-1.0pct/+0.2pct/-0.3pct/-0.6pct. Thanks to the year-on-year decline in the price and cost of raw materials and the improvement of the company's lean management capacity, both gross profit margin and overall expense rate have improved.
From a product point of view, the revenue of custom furniture / matching household products is 1.490 million yuan, with a decrease of 9.22% and 7.11%, respectively, and the gross profit margin is 35.28%, 13.69%, year-on-year change + 2.64pct/-9.50pct. From a regional point of view, South China / East China / North China / Central China achieved operating income of 5.94 million yuan, respectively, with a year-on-year change of-13.84%, 0.32%, 5.78%, 18.41%, and a gross profit margin of 37.83%, 34.40%, 30.97%, 24.68%, and + 4.91pct/+4.64pct/-4.61pct/-3.96pct, respectively.
Create a multi-product matrix and continuously optimize the channel layout. 23H1, the company launched a new "random choice" whole-house customization model, and iteratively innovated the new model based on the AIGC technology of multi-modal large model to create a multi-product matrix to meet the needs of users at different levels. At the same time, the company continues to increase market investment efforts, optimize the direct operation and join the channel layout, and vigorously expand bag-carrying, decoration companies and other multi-channel business cooperation.
In the second half of the year, the company will step up efforts to attract investment, focusing on recruiting large businessmen and distributors, and continue to optimize the transfer of direct stores.
Profit forecast and rating: we expect the company's 23-and 24-year return net profit to be 220 million yuan, an increase of 371.6% and 44.8% over the same period last year. The current closing price corresponds to 17 and 12 times PE for 23 and 24 years, respectively. Give 23 years 22-24 times PE valuation, reasonable value range 24.28-26.48yuan, corresponding to 23 years PB1.3-1.4times, compared with comparable companies in a reasonable level, given a "better than the big city" rating.
Risk hint: the price of raw materials is higher than expected, and the channel expansion is not as expected.