H1 经销店数净增103 家，华中、西南、华北、华南收入保持正增长1）预包装及其他产品、包材、“加盟费、门店管理费、信息系统使用费”收入保持增长。2024H1，公司鲜货、预包装及其他产品、包材、“加盟费、门店管理费、信息系统使用费”收入分别为13.86、1.76、0.42、0.33 亿元，同比-6.48%、+4.11%、+5.47%、+7.32%；鲜货产品中，夫妻肺片、整禽类、香辣休闲、其他鲜货收入同比-10.37%、-9.52%、-26.33%、+13.87%，其他鲜货增速领先。Report highlights
occurrences
Company Announces 2024 Interim Report. With 2024H1, the company achieved total revenue of 1.663 billion yuan (-4.59%), net profit due to mother 0.198 billion yuan (+10.28%), and net profit not attributable to mother of 0.163 billion yuan (+14.78%). In the 24Q2 single quarter, the company achieved total revenue of 0.969 billion yuan (-1.98%), net profit of 0.144 billion yuan (+6.77%), and net profit of non-return to mother of 0.124 billion yuan (+15.05%). The company plans to pay a cash dividend of 0.30 yuan per share, with a dividend rate of 62.74%.
The number of H1 dealerships increased net by 103, while revenue in central China, southwest China, North China, and South China maintained positive growth 1) Revenue from pre-packaging and other products, packaging materials, “franchise fees, store management fees, and information system usage fees” continued to grow. 2024H1, the company's revenue from fresh goods, pre-packaging and other products, packaging materials, “franchise fees, store management fees, and information system usage fees” was 13.86, 0.176, 0.042, 0.033 billion yuan, respectively, -6.48%, +4.11%, +5.47%, and +7.32%; among fresh products, revenue from husband and wife lung slices, whole poultry, spicy leisure, and other fresh goods was -10.37%, -9.52%, -26.33%, and +13.87%, respectively.
2) The growth rate of fresh goods revenue improved month-on-month in Q2. 2024Q2, the company's revenue from fresh goods, pre-packaging and other products, packaging materials, “franchise fees, store management fees, and information system usage fees” was 8.24, 0.089, 0.025, and 0.017 billion yuan, respectively, -3.15%, +1.92%, +12.67%, and +6.64% year-on-year. Fresh goods revenue growth rate Q2 improved month-on-month; among fresh goods, husband and wife lung fillets, whole poultry, spicy leisure, and other fresh goods revenue were -6.52%, -2.46%, -24.58%, and +11.30%, respectively.
3) Central China, Southwest China, North China, and South China maintained positive revenue growth. 2024H1, the company's revenue in East China, Central China, Southwest China, North China, South China, Northwest China, Northeast China, overseas and other regions accounted for 68.25%, 11.75%, 9.47%, 5.19%, 2.68%, 1.44%, 0.63%, 0.08%, 0.52%, respectively; Central China, Southwest China, North China, and South China lead revenue growth, H1 +0.54% YoY, +13.33%, +7.23%, Q2 +1.98%, +14.50%, +5.35%; East China, Earnings in the Northwest and Northeast China declined, with H1 -7.63%, -7.11%, and -33.30% YoY; Q2 -4.58%, -38.86%, and -36.18% YoY.
4) The efficiency of H1 direct-run stores improved, and the number of dealerships increased net by 103. 2024H1, the company's distribution and direct sales revenue were 1.387 billion yuan, 0.032 billion yuan, -8.42%, +3.64%, and at the end of 24H1, the total number of stores nationwide was 6,308 (6279 distributors and 29 direct sales), 24H1 net increase of 103 (net distribution increase of 103), and the total number of stores was +2.79% (year-on-year number of direct stores -9.38%, number of dealerships +2.85%); in terms of individual stores, the revenue of 24H1 direct-run stores and single franchisees respectively 1.1024 , 0.2209 million yuan, +14.36%, -10.96% year-on-year.
Raw material prices continued to fall, H1 gross margin +3.66pct year-on-year
1) Costs declined, and H1 gross margin was +3.66 pct year over year. In 24H1, the company's gross profit margin and net profit margin were 24.79% and 11.91%, respectively, +3.66 and +1.61pct. The increase in gross margin was mainly due to declining costs; in 24Q2, the company's gross profit margin and net profit margin to mother were 27.59% and 14.88%, respectively, +4.59 and +1.22pct year over year.
2) Management expenses rates and bad debt losses have increased. 24H1, the company's sales, management, R&D, and financial expense ratios were 5.07%, 5.35%, 0.41%, and 0.12%, respectively, +0.03, +0.68, +0.18, and +0.20pct; credit impairment loss/revenue +0.40pct to 0.42% year over year (positive number indicates loss), mainly bad debt losses; other profit/revenue -0.23pct to 1.95pct yoy, mainly due to a slight decrease in government subsidies.
Investment advice
We expect the company's net profit to be 0.362, 0.408, and 0.456 billion yuan respectively in 2024, 2025, and 2026, with growth rates of 9.04%, 12.94%, and 11.58%, corresponding to 17, 15, and 13 times PE on August 19 (market value 6.1 billion yuan), maintaining an “gain” rating.
Risk warning
Food safety risks, raw material price increases, single-store repairs falling short of expectations.
