Incident: 2024H1's operating revenue/net profit to mother was 0.187/0.0287 billion yuan (+15.16%/+20.68%), respectively; 2024Q2's operating revenue/net profit to mother was 0.096/0.0158 billion yuan (+15.58%/+20.37%), respectively.
The growth in 24Q2 was steady, and the growth of the sauce category accelerated. 24Q2 continued to grow well. In terms of products, 24Q2's revenue from sauces/powders/food additives was 75.16/19.75/0.42 million yuan (25.39%/-9.73%/-53.80%), and the revenue share changed +6.38/ -5.73/-0.65 percentage points to 78.84%/20.72%/0.44%, respectively. 24H1 has sold more than 1,800 products. In the past three years, new products have been developed to account for more than 50% of sales. Among them, more than 400 products such as flower gum and chicken soup have been added to the sauce category; more than 140 products such as pot wrapped meat seasoning have been added to the powder category; and 16 products such as fried chicken sauce have been added to retail terminals. At the same time, work such as product research and development reserves and cooperation channel construction in the field of prepared dishes and baking was promoted in an orderly manner. Prepared dishes initially began negotiations and cooperation with well-known restaurant chain customers.
East China achieved a high growth rate under a high base, and the restaurant channel grew significantly. 24Q2's East China, North China, Northeast China, South China, and other revenues were 6835/1344/440/4.3.92/0.53 million yuan (YoY +19.37%/-3.10%/+9.99%/+3.74%/+60.03%/-15.47%). East China/South China achieved high growth, and the Shanghai Operation Center has been put into operation. It will serve as the company's sales management and R&D experience center, which is deeply involved in the Yangtze River Delta market to build a sales management and R&D experience center for the company. 24Q2 catering/food processing/brand customization/direct e-commerce retail/dealer revenue was 4767/3411/1075/0.39/0.64/17.64 million yuan (YoY +37.94%/-2.21%/-14.77%/-14.47%/+23.26%/-40.04%). By consolidating the share of the original restaurant chain channel, it actively explores potential channels and customers, and deepens cooperation with strategic customers and customers of well-known domestic and foreign restaurant chains.
The gross margin has declined, and the cost ratio has been optimized. The company's gross margin/net margin changed year-on-year in 24Q2, respectively -2.
49/+0.66 percentage points to 38.05%/16.54%; sales expense ratio/management expense ratio/financial expense ratio changed by -1.21/-1.52/+0.12 percentage points to 6.96%/7.84%/0.68%, respectively. The decrease in the sales expense ratio was mainly due to a decrease in employee remuneration, and the decrease in the management expense ratio was mainly due to a decrease in share payments/service fees.
Investment proposal: In 24, the company will improve the layout of the marketing headquarters/center/office, strengthen the resource allocation and efficiency of the Shanghai Operation Center, and strengthen marketing capabilities in South China, Southwest China and Northwest China. Due to fierce competition in the external market environment and structural changes, according to the semi-annual report, we slightly lowered our profit expectations. We expect 24-26 revenue of 0.432/0.518/0.62 billion yuan (previous value was 0.449/0.556/0.685 billion yuan), an increase of 20%/20%/20%, and net profit to mother of 0.071/0.087/0.106 billion yuan, respectively (previous value was 0.074/0.094/0.118 billion yuan), same It increased 26%/23%/22%, and the corresponding PE was 33X/27X/22X respectively, maintaining the “buy” rating.
Risk warning: macroeconomic downturn, consumption recovery falls short of expectations, regional expansion falls short of expectations, C-side development falls short of expectations, production capacity construction falls short of expectations, etc.