Jingu Finance News | China Securities Co., Ltd. issued a research report, indicating that beijing tongrentangcm (03613) achieved revenue of 0.665 billion Hong Kong dollars in the first half of 2024, a year-on-year decrease of 18.2%, achieved a net income attributable to the parent company of 0.22 billion Hong Kong dollars, a year-on-year decrease of 17.4%. The company's performance is under short-term pressure, mainly due to the sluggish retail markets in Hong Kong and Macau, weak consumer spending by residents and tourists, and a significant decline in sales revenue. In the second half of the year, as the consumption environment in Hong Kong gradually improves, overseas regions maintain steady growth, and the mainland market continues to increase volume, the overall performance is expected to gradually recover. The bank is bullish on the company's steady recovery in the second half of the year.
The bank believes that as the overseas business operation platform of the tongrentang group, the company's operating trend is expected to gradually improve. Coupled with the company's proactive deepening of marketing system reform, performance is expected to gradually achieve recovery growth. The bank expects the company to achieve operating income of 1.579 billion Hong Kong dollars, 1.747 billion Hong Kong dollars, and 19.34 billion Hong Kong dollars in 2024-2026, with net income attributable to the parent company of 0.551 billion Hong Kong dollars, 0.616 billion Hong Kong dollars, and 6.86 billion Hong Kong dollars, equivalent to diluted EPS of 0.66 Hong Kong dollars/share, 0.74 Hong Kong dollars/share, and 0.82 Hong Kong dollars/share, with year-on-year growth of 2.0%, 11.7%, 11.5%, corresponding to PE ratios of 11.4x, 10.2x, and 9.2x, maintaining a "buy" rating.
