关联方（主要是海底捞，特海，蜀海集团）业务中速食及复调增长亮眼，主要原因是新品冒菜及麻辣烫调味料产品上市，及速食品类中膨化和卤味食品销量增加，24H1 关联方实现收入9.89 亿元，同比增长11.5%，其中火锅底料/中式复调/ 方便食品分别实现收入8.87/0.24/0.78 亿元， 同比增长5.7%/29.9%/167.7%，24H1 关联方收入占比为33.8%（去年同期为33.9%），其余业务收入占比为66.2%（去年同期为66.1%）。Matters:
Yihai International announced its 24-year interim results. During the period, the company achieved main revenue of 2.927 billion yuan, a year-on-year increase of 12%; realized net profit to mother of 0.308 billion yuan, a year-on-year decrease of 13.8%, and a net interest rate of 11% (-3pct). Net profit was mainly affected by increased exchange losses, reduced government subsidies, and increased marketing rates. The dividend ratio increased to 0.2,825 yuan per share, or about 90% of the dividend.
Commentary:
Related parties (mainly Haidilao, Tehai, Shuhai Group) saw impressive growth in the fast food and polymodulation business, mainly due to the launch of new pickles and spicy hot sauce products, and the increase in sales of puffed and braised foods in the fast food category. 24H1 related parties achieved revenue of 0.989 billion yuan, an increase of 11.5% year on year. Among them, hot pot base/Chinese polyformized/convenience foods achieved revenue of 0.887/0.024/0.078 billion respectively, up 5.7%/29.9%/167.7% year on year. The revenue share was 33.8% (33.9% in the same period last year), and the rest of the business revenue accounted for 66.2% (66.1% in the same period last year).
Polymodulation and fast food performed well in the third party business. 24H1 third party achieved revenue of 1.938 billion yuan, an increase of 12% over the previous year, of which Hot Pot Seasoning/Chinese Polymixing/Convenience Food each achieved revenue of 0.86/0.43/0.623 billion yuan, +5.6%/24.1%/14.5% YoY. Third-party remodulation benefited from the launch of new crayfish seasoning products and the increase in customized flavorings for B-side customers.
Gross margin was slightly reduced due to price adjustments by related parties, and the gross margin of 24H1 company was 30% (-0.5pct). By category, gross margin of hot pot seasoning related parties -3.6pct to 14.7%, 3rd party gross margin +0.4pct to 48.4%, gross margin of Chinese compound seasoning related parties +3.9pct to 18.6%, third party gross margin +1.6pct to 35.6%, convenience fast food related party gross margin -8.8pct to 14.8%, third-party gross margin +2.7pct to 25.9% Distribution expenses accounted for +2.8pct to 12%, mainly due to increased advertising and transportation expenses. Management expenses accounted for -0.6pct to 4.8%.
In the first half of '24, the company insisted on using the Innovation Committee to coordinate product research and development to develop the B-side market to meet the diverse needs of B-side customers. In the first half of the year, a total of 50+ products were launched, including zero-additive series, quick food series, crayfish seasoning, and a variety of convenient fast food flavors. Catering and food companies accounted for 2.3% of channel revenue in the first half of '24, +1pct.
Production capacity is gradually being launched, and production capacity is expected to continue to be released in the future: the Bazhou Phase II plant will be put into operation in Q1 in '24, with a convenient fast food production capacity of 0.028 million tons, mainly covering fast food sales in North China and Northeast China; the Anhui Science and Technology butter production base introduced advanced butter production lines to achieve raw material upgrades. The first phase has a planned production capacity of 0.057 million tons. 24Q2 has already been put into operation. It is expected to focus on covering the Group's internal needs and developing B-side customers. It mainly covers the Southeast Asian market, and will gradually be supplied to other overseas regions in the future.
Profit forecasting, valuation and investment ratings: We believe that the company has an excellent track, sells “addictive” items with an existing strong brand+flexible system and strong incentives, and the sales side is strongly motivated by a partner/mentoring system. Demand from related parties is stable, and third parties are working hard to build product organizations while expanding B-side channels, but considering the uncertainty of consumer demand, we lowered the 2024-2026 EPS forecast to 0.84, 0.96, and 1.07 yuan (previous values were 0.93 yuan, 1.05 yuan, 1.17 yuan). The current stock price corresponding to PE is 12 times, 11 times, and 10 times, respectively. PE is given 15 times for 24 years, and the corresponding target price is HK$13.80 (current exchange rate), maintaining the “recommended” rating.
Risk warning: upward pressure on raw material prices; related party Haidilao store expansion falls short of expectations and price adjustments; third-party channel expansion falls short of expectations; new product promotion falls short of expectations; production capacity release falls short of expectations.
