Description of the event
The company's 2024H1 gross revenue was 0.187 billion yuan (up 15.16% year on year); net profit to mother was 28.731 million yuan (up 20.68% year on year), after deducting non-net profit of 27.4267 million yuan (up 24.7% year on year). The company's total revenue for 2024Q2 was 95.6967 million yuan (up 15.58% year on year); net profit to mother was 15.826 million yuan (up 20.37% year on year), after deducting non-net profit of 15.2977 million yuan (up 24.82% year on year).
Incident comments
Growth was accelerated by the expansion of new customers in the catering channel, and the processing side and C-side remained stable.
Looking at 2024H1 revenue by channel: catering 0.091 billion yuan (up 26.23% year on year), single Q2 (up 37.94% year on year); food processing 0.064 billion yuan (up 7.24% year on year), single Q2 (year on year decrease 2.21%); brand customization 0.025 billion yuan (up 7.95% year on year), single Q2 (up 14.77% year on year); dealer (retail) 0.005 billion yuan (down 18.83% year on year), single Q2 (year over year) (Decreased by 40.04%). Against the backdrop of stable overall demand, the company is driving the opposite trend in catering channels through new customer expansion.
The decline in the expense ratio during the period unleashed profit elasticity.
2024H1's net profit margin increased by 0.7 pct to 15.33%, gross margin decreased by 1.48 pct to 38.16% year on year, and the cost ratio for the period decreased by 2.12 pct year on year to 20.65% year on year. Among the detailed changes were sales (down 0.38 pct year on year), management (down 1.6 pct year on year), and R&D (down 0.32 pct year on year). Looking at 2024Q2 alone, the company's net profit margin increased 0.66 pct to 16.54%, gross margin decreased 2.49 pct to 38.05% year on year, and the cost ratio for the period fell 3.06 pct year on year to 18.83% year on year. Among them, detailed changes: sales (down 1.21 pct year on year), management (down 1.52 pct year on year), and R&D (down 0.44 pct year on year). The reduction in the expense ratio is mainly due to a decrease in personnel remuneration in sales expenses and a decrease in share payments in management expenses.
New customers continued to expand, and the company achieved contrarian growth against the backdrop of a weak recovery in restaurants.
The company focuses on meeting market needs and continues to strengthen product research and development. In the process of gradual restoration of the catering market, the company actively expands new channels and customers, and strengthens and consolidates its market share in the restaurant chain and food processing fields. In terms of production capacity, the company expects to complete the completion and commissioning of the fund-raising project by the end of 2024. The company is expected to continue to promote product upgrades and expand new categories, optimize the product structure, and enhance the company's development momentum. The company's net profit from 2024 to 2025 is estimated to be 0.08/0.092 billion yuan, EPS is 0.81/0.94 yuan, respectively, corresponding PE is 30/26 times, maintaining a “buy” rating.
Risk warning
1. Risk of slow recovery in demand; 2. Industry competition further exacerbates risks; 3. Risk of changes in consumer consumption habits; 4. Risk that prices of some raw materials will continue to rise, etc.