// 热点聚焦 // 1、国务院总理李强在北京出席中国发展高层论坛2025年年会开幕式并发表主旨演讲。李强表示， 将实施更加积极有为的宏观政策，进一步加大逆周期调 节力度，必要时推出新的增量政策，为经济持续向好、平稳运行提供有力支撑。 深化经济体制改革，不断推进全国统一大市场建设，着力打通经济循环 的堵点卡点，为各类经营主体进一步营造良好发展环境。 // 环球市场 // 1、未来一周，全球市场大事不断。 AH股密集发布财报，比亚迪、泡泡玛特等在列；多个经济体公布重要数据，美联储最关注通胀指标来袭；中国 央行1.4万亿逆回购到期； 博鳌亚洲论坛、中关村论坛相继开幕；苹果将于上海举行开发者活动，苹果智能中国版或推出。 // 宏观 // 1、国务院总理李强会见美国联邦参议员戴安斯一行。李强表示， 打贸易战没有赢家。没有哪个国家的发展繁荣是靠加征关税实现的，只能靠开放、靠合 作。我们应当通过做大合作蛋糕，用更多利益增量去解决贸易不平衡等问题。 中国始终欢迎包括美国在内的各国企业来华分享发展机遇，将积极推动解 决企业合理诉求，对内外资企业一视同仁。 2、国务院副总理何立峰会见跨国公司负责人时指出，中国经济韧性强、潜力大 ...

以下文章来源于清科研究 ，作者创造价值的 清科研究 . 清科创业（01945.HK）旗下清科研究中心致力于为众多的有限合伙人、VC/PE机构、战略投资者、以 及政府机构、律师事务所、会计事务所、投资银行、研究机构等提供专业的信息、数据、研究和咨询服 务。 年度盘点。 作者 | 清科研究 来源 | 清科研究 （ID：pedata2017） 01 整体回顾 02 市场分布 A股IPO总量同比收缩近七成，创业板上市企业数量相对较多 2024年中企IPO市场总体呈现出阶段性收缩态势，但下半年IPO活跃度环比有所回升。 根据清科创业（01945.HK）旗下清科研究中心统计，2024年中企境内外上市195家 【1】，同比下降51.1%，首发融资额约合人民币1442.66亿元【2】，同比下降 63.6%，上市企业数量和融资金额为近10年新低；其中，下半年有113家中企IPO，首 发融资额约合人民币973.53亿元，环比分别上升37.8%、107.5%。 分市场来看，2024年 A股 共有100家企业上市，同比下降68.1%； 境外市场 共95家 中企上市，同比上升10.5%，其中今年全市场首发融资额前三大中企IPO均于港股 ...

Investment Rating - Buy rating for the company [3] Core Views - The company is a dual leader in the instant noodles and soft drink industries, with a continuously optimizing revenue structure [3] - The company has a solid channel foundation and scale advantage, enabling it to take the initiative in product upgrades and pricing [3] - The company is expected to lead a new round of price increases in the industry, improving the competitive landscape and enhancing profitability [4] - The company's profitability is expected to improve, with shareholder returns becoming more prominent [4] Industry Overview Soft Drink Industry - The soft drink industry is driven by high-quality and health-conscious trends, with the bottled water segment leading in market share [33] - The market size of the soft drink industry reached 6435 88 billion yuan in 2023, with a CAGR of 6 68% from 2009 to 2023 [33] - The bottled water segment has seen its market share increase from 21 61% in 2009 to 35 21% in 2023 [33] - The sugar-free tea and carbonated drink segments are growing rapidly, with sugar-free carbonated drinks accounting for 23 04% of the carbonated drink market in 2023 [3] Instant Noodle Industry - The instant noodle industry is entering a phase of stable volume and rising prices, with a CAGR of 8 18% from 2017 to 2022 [58] - The average price of instant noodles increased at a CAGR of 5 87% from 2020 to 2022, driven by product upgrades and consumer demand for higher quality [59] Company Performance - In 2023, the company achieved total revenue of 80 418 billion yuan, with instant noodles and beverages contributing 35 80% and 63 34% respectively [3] - The CAGR for instant noodles and beverage revenues from 2017 to 2023 were 4 10% and 6 58% respectively [3] - The company's gross profit margin for instant noodles and beverages in 2023 were 27 00% and 32 10% respectively [15] Product and Channel Strategy - The company has a strong product portfolio, with container noodles and high-priced bagged noodles accounting for 46 91% and 41 16% of instant noodle sales in 2023 [13] - The company has implemented a channel reform strategy, reducing the size of regions and increasing the number of small distributors to improve product and channel responsiveness [3] - As of the end of 2023, the company had 348 business offices, 303 warehouses, 76,875 distributors, and 217,087 direct retailers [3] Future Outlook - The company is expected to benefit from the industry's upgrade towards healthier and higher-quality products, such as sugar-free tea, sugar-free carbonated drinks, and premium bottled water [3] - The company's leading position in the industry and its ability to replicate past successes are expected to help it capture a significant share of new market trends [3] - The company's EPS for 2024 and 2025 are projected to be 0 64 and 0 73 yuan respectively, with corresponding PE valuations of 18 and 16 times [4]

Financial Performance - Revenue increased by 0.7% to RMB 41,201,208 thousand in the first half of 2024 compared to the same period in 2023[2] - Gross profit margin improved by 2.1 percentage points to 32.6% in the first half of 2024[2] - EBITDA rose by 12.2% to RMB 4,824,605 thousand in the first half of 2024[2] - Net profit attributable to shareholders increased by 15.1% to RMB 1,885,310 thousand in the first half of 2024[2] - Basic earnings per share increased by RMB 4.39 cents to RMB 33.46 cents in the first half of 2024[2] - The company's profit for the period was RMB 1.89 billion, contributing to total comprehensive income of RMB 1.82 billion for the six months ended June 30, 2024[9] - Total comprehensive income for the six months ended June 30, 2024 was RMB 2.17 billion, including minority interests[9] - Revenue from customer contracts reached RMB 41,166.58 million, with the beverage segment contributing RMB 27,063.46 million and the instant noodle segment contributing RMB 13,768.26 million[14] - Profit before tax for the beverage segment grew to RMB 1,988.96 million, up 27.6% from RMB 1,558.80 million in H1 2023[14][15] - The company's total profit for the period was RMB 2,235.07 million, up 16.2% from RMB 1,922.88 million in H1 2023[14][15] - Revenue increased by 0.7% YoY to RMB 41.201 billion, with beverage revenue growing by 1.7% and instant noodle revenue declining by 1.0%[41] - EBITDA grew by 12.2% YoY to RMB 4.825 billion, with net profit attributable to shareholders increasing by 15.1% to RMB 1.885 billion[41] - Instant noodle business revenue declined by 1.0% YoY to RMB 13.814 billion, but gross margin improved by 1.3 percentage points to 27.1%[42][44] - Beverage business revenue grew by 1.7% YoY to RMB 27.065 billion, with gross margin improving by 2.5 percentage points to 35.2%[42][48] - Net profit for the beverage business increased by 26.9% YoY to RMB 1.115 billion, driven by gross margin improvement[48] Cash Flow and Liquidity - Cash and bank deposits (including long-term time deposits) increased by RMB 3,191,904 thousand to RMB 17,930,285 thousand as of June 30, 2024[2] - Bank balances and cash rose to RMB 10,790,607 thousand as of June 30, 2024, compared to RMB 6,754,466 thousand at the end of 2023[6] - Operating cash flow increased to RMB 4,405.46 million in H1 2024, up 15.3% from RMB 3,821.84 million in H1 2023[10] - Net cash from operating activities rose to RMB 3,510.43 million, a 23.5% increase compared to RMB 2,842.99 million in the same period last year[10] - The company's cash and cash equivalents increased to RMB 10,816.89 million as of June 30, 2024, compared to RMB 14,283.72 million in the same period last year[10] - The company's operating cash inflow was RMB 3.51 billion, with a net cash increase of RMB 3.192 billion in bank deposits and cash (including long-term fixed deposits)[54] - The company's net cash position was RMB 2.87 billion, an increase of RMB 1.861 billion compared to December 31, 2023[54] Assets and Liabilities - Total assets grew to RMB 56,019,751 thousand as of June 30, 2024, up from RMB 53,149,654 thousand at the end of 2023[6] - Inventory decreased to RMB 4,028,366 thousand as of June 30, 2024, compared to RMB 4,385,268 thousand at the end of 2023[6] - Accounts receivable increased to RMB 2,111,989 thousand as of June 30, 2024, up from RMB 1,579,983 thousand at the end of 2023[6] - Total liabilities increased to RMB 40.25 billion as of June 30, 2024, compared to RMB 35.93 billion as of December 31, 2023[7] - Net current liabilities worsened to RMB -13.08 billion as of June 30, 2024, from RMB -8.72 billion as of December 31, 2023[7] - Total equity decreased to RMB 15.77 billion as of June 30, 2024, from RMB 17.22 billion as of December 31, 2023[7] - Current liabilities increased to RMB 34.92 billion as of June 30, 2024, compared to RMB 29.19 billion as of December 31, 2023[7] - Long-term interest-bearing borrowings decreased to RMB 3.99 billion as of June 30, 2024, from RMB 5.25 billion as of December 31, 2023[7] - Reserves decreased to RMB 11.51 billion as of June 30, 2024, from RMB 12.91 billion as of December 31, 2023[7] - Minority interests decreased to RMB 3.27 billion as of June 30, 2024, from RMB 3.33 billion as of December 31, 2023[7] - Total assets increased to RMB 56,019,751 thousand as of June 30, 2024, compared to RMB 53,149,654 thousand as of December 31, 2023, reflecting growth in the company's asset base[16] - The beverage segment's assets grew to RMB 32,673,296 thousand as of June 30, 2024, up from RMB 32,415,379 thousand as of December 31, 2023, indicating continued investment in this key segment[16] - Total liabilities increased to RMB 40,250,703 thousand as of June 30, 2024, compared to RMB 35,927,410 thousand as of December 31, 2023, reflecting higher financial obligations[16] - The company's total assets and total liabilities as of June 30, 2024, were RMB 56.02 billion and RMB 40.251 billion, respectively, with a debt ratio of 71.9%, up 4.3 percentage points from the end of 2023[54] Segment Performance - The beverage segment's revenue grew by 1.7% year-over-year, reaching RMB 27,065.28 million in H1 2024[14] - The instant noodle segment's profit before tax increased by 3.4% to RMB 1,128.52 million in H1 2024[14] - The beverage segment experiences strong seasonal demand during Q2 and Q3, with peak sales occurring from June to August due to hot weather conditions[17] - The company focused on premium and high-end instant noodle products, such as "Soup Master" and "Yupin Feast," to meet consumer demand for quality and health[46] - The beverage business launched new sugar-free tea products, including "Sugar-Free Jasmine Tea" and "Sugar-Free Oolong Tea," to align with health trends[49] - The company leveraged celebrity endorsements and IP collaborations, such as with Disney's Zootopia, to enhance brand visibility and drive sales[45][49][50] - The company launched new products such as "Starbucks Raw Coffee" series and "Gatorade Electrolyte Drink," expanding its market presence in specific consumer segments[53] - The company's "Chun Cui Zero Sugar" tea drink and "Speed Noodle House" reduced-salt beef noodles were recognized as landmark achievements in the food industry's nutrition and health initiatives[57] - The company's "Pure Joy" brand collaborated with the "Sweet Potato Travel Agency" IP and China National Geographic to create the "Pure Journey" campaign, enhancing brand visibility[52] - The company's "Juice" product line introduced new flavors and packaging upgrades, focusing on health and regional ingredient preferences[51] Tax and Financial Expenses - The company's tax payments decreased to RMB 809.13 million, down 17.1% from RMB 690.50 million in H1 2023[14][15] - The company's tax expenses for the first half of 2024 totaled RMB 809,130 thousand, up from RMB 690,497 thousand in the same period of 2023, driven by higher current tax payments[18] - Financial expenses decreased to RMB 214,229 thousand in the first half of 2024, down from RMB 264,353 thousand in the same period of 2023, reflecting lower interest costs[18] - The company benefits from tax incentives in China's western regions, where certain subsidiaries enjoy a reduced corporate income tax rate of 15%[19] - In Singapore, the company qualifies for partial tax exemption schemes, with 75% exemption on the first SGD 10,000 of taxable income and 50% on the next SGD 190,000[19] - The company has engaged tax experts to assist with the implementation of OECD's Pillar Two model rules, which are not expected to have a material impact on operations[20] Shareholder and Dividend Information - The company approved final and special final dividends totaling RMB 3.12 billion for 2023, reducing total equity[9] - Basic earnings per share increased to 33.46 RMB cents in the first half of 2024, up from 29.07 RMB cents in the same period of 2023[21] - Diluted earnings per share rose to 33.46 RMB cents in H1 2024 compared to 29.04 RMB cents in H1 2023[21] - The total number of share options under the 2008 Share Option Plan as of June 30, 2024, was 15,722,000, with 9,137,000 options canceled or expired during the period[69] - No share options under the 2008 Share Option Plan were exercised during the six months ended June 30, 2024[69] - Under the 2018 Share Option Plan, 2,478,000 share options were granted on April 27, 2018, with an exercise period from April 30, 2021, to April 26, 2028[72] - Under the 2018 Share Option Plan, 5,626,000 share options were granted on April 27, 2018, with an exercise period from April 30, 2021, to April 26, 2024[72] - The total number of share options under the 2018 Share Option Plan as of June 30, 2024, was 2,478,000, with 3,785,000 options canceled or expired during the period[73] - No share options under the 2018 Share Option Plan were exercised during the six months ended June 30, 2024[73] - As of June 30, 2024, Executive Director Wei Hongming held 5,000,000 shares, representing 0.09% of the total shares, with 1,385,000 shares held by beneficial owners[75] - As of June 30, 2024, Executive Director Wei Hongcheng held 5,000,000 shares, representing 0.09% of the total shares, with 1,385,000 shares held by beneficial owners[75] - As of June 30, 2024, CEO Chen Yingrang held 1,380,000 shares, representing 0.02% of the total shares[75] - No other directors or their immediate family members were granted any rights to acquire shares or debentures of the company during the period ended June 30, 2024[75] - The board of directors includes executive directors Wei Hongming, Ida Junichiro, Wei Hongcheng, Shinohara Koji, Takahashi Yukiyuki, and Zeng Qian, as well as independent non-executive directors Xu Xinqun, Li Changfu, and Tochio Masaya[77] - The announcement was made by Chairman Wei Hongming on August 26, 2024, in Hong Kong[78] Investments and Capital Expenditures - Investment in property, plant, and equipment increased to RMB 1,829.87 million, up 30.4% from RMB 1,402.83 million in H1 2023[10] - Capital expenditure commitments for property, plant, and equipment increased to RMB 1,263,837 thousand, up 17.4% from RMB 1,076,179 thousand in 2023[37] - Investment funds increased from RMB 254,349 thousand to RMB 384,126 thousand, a growth of 51.0%[30] - Structured deposits grew from RMB 50,000 thousand to RMB 323,072 thousand, a significant increase of 546.1%[30] - Non-listed equity securities decreased slightly from RMB 158,518 thousand to RMB 154,560 thousand, a decline of 2.5%[30] Risk Management and Internal Controls - The company has established a risk management and internal control system based on the COSO framework, aiming to control overall risk at an acceptable level and ensure operational efficiency and compliance[63] - The company has implemented a three-line defense organizational structure for risk management, with the audit committee assisting the board in reviewing the effectiveness of the system[64] ESG and Corporate Responsibility - The company has been recognized for its ESG contributions, including being awarded the "2024 ESG Annual Case" by People's Daily and the "Green and Low-Carbon Partner" title by the Shanghai Energy Conservation Promotion Week Organizing Committee[58] Future Outlook and Strategy - The company expects domestic demand to remain a key driver of economic growth in the second half of 2024, with a focus on consolidating, innovating, and developing its business strategies[59] - The company plans to expand its instant noodle product offerings with different specifications, prices, and flavors to cater to consumer needs and drive industry growth[59] - The beverage division aims to accelerate the establishment of scale advantages, focusing on core products and expanding innovative offerings to meet diverse consumer scenarios and boost sales growth[59] - The company emphasizes long-term development by increasing investment in basic research, talent development, brand building, digital operations, and food safety control[59] Accounts Receivable and Payable - Accounts receivable aged 0-90 days increased to 2,014,920 thousand RMB as of June 30, 2024, from 1,490,555 thousand RMB at December 31, 2023[23] - Total accounts payable grew to 9,455,348 thousand RMB as of June 30, 2024, up from 8,572,717 thousand RMB at December 31, 2023[26] Loans and Financial Instruments - The company issued new bank loans totaling 8,408,387 thousand RMB in the first half of 2024, compared to 10,666,968 thousand RMB in the same period of 2023[25] - Repayments of bank loans amounted to 7,211,969 thousand RMB in H1 2024, down from 10,820,642 thousand RMB in H1 2023[25] - Financial assets measured at fair value through profit or loss totaled 1,123,441 thousand RMB as of June 30, 2024, compared to 1,314,415 thousand RMB at December 31, 2023[28] - Level 3 financial assets (unobservable inputs) increased to 861,758 thousand RMB as of June 30, 2024, from 1,145,230 thousand RMB at December 31, 2023[28] - The company's notes payable had a fair value of 3,479,117 thousand RMB as of June 30, 2024, up from 3,333,928 thousand RMB at December 31, 2023[25] Related Party Transactions - Sales to joint ventures increased from RMB 455,357 thousand to RMB 485,253 thousand, a growth of 6.6%[38] - Purchases from companies controlled by directors and their relatives decreased from RMB 3,031,420 thousand to RMB 2,860,992 thousand, a decline of 5.6%[38] - Distribution costs paid to companies controlled by directors' family members decreased slightly from RMB 886,256 thousand to RMB 870,636 thousand, a decline of 1.8%[38] - Promotional expenses paid to companies controlled by major shareholders increased from RMB 25,893 thousand to RMB 26,713 thousand, a growth of 3.2%[38] - Rental income from investment properties and property, plant, and equipment decreased from RMB 17,842 thousand to RMB 16,076 thousand, a decline of 9.9%[38] Operational Metrics - The company's finished goods turnover period decreased to 16.7 days from 19.5 days, and the accounts receivable turnover period increased to 8.1 days from 7.7 days[55] - The company's current ratio decreased to 0.6x from 0.7x, and the net debt-to-capital ratio dropped to -23.0% from -7.3%[55] - The company's employee count as of June 30, 2024, was 64,797, with significant efforts in leadership and organizational capacity building[56]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][6][12] Core Views - The report highlights stable revenue and recovery in profitability, with expectations for expanded scale advantages [2][6] - The beverage segment, particularly tea drinks, has shown strong performance, contributing to overall profitability recovery [4][6] - The company has established scale advantages in its beverage business by focusing on core categories and optimizing marketing strategies [4][6] Summary by Sections Financial Performance - For the first half of 2024, the company reported total revenue of 415.50 billion (YOY -0.15%) and main business revenue of 412.01 billion (YOY +0.72%) [3][6] - The net profit attributable to shareholders reached 18.85 billion (YOY +15.12%), with a net profit margin increase of 0.57 percentage points [3][6] Beverage Business - The beverage segment achieved revenue of 270.65 billion (YOY +1.73%) with a compound annual growth rate (CAGR) of 5.54% from 2022H1 to 2024H1 [4][6] - The gross margin for the beverage business increased by 2.5 percentage points to 35.2%, leading to a profit increase of 26.9% to 11.15 billion [4][6] Instant Noodle Business - The instant noodle segment maintained stable revenue at 138.14 billion (YOY -0.98%) with an improved gross margin of 27.1% [6][8] - The company upgraded core products and expanded into high-potential products, adapting to changing consumer shopping habits [6][8] Financial Forecasts - Projected total revenues for 2024-2026 are 840.78 billion, 883.54 billion, and 914.66 billion respectively, with net profits of 37.25 billion, 41.94 billion, and 46.26 billion [5][6] - The report estimates EPS for 2024-2026 to be 0.66, 0.74, and 0.82 respectively, with a PE valuation range of 15-19 times for 2024E [5][6]

Investment Rating - The investment rating for the company is "Buy (Maintain)" [4] Core Views - The company achieved a revenue of 41.201 billion yuan in H1 2024, representing a year-on-year increase of 0.72%. The gross profit was 13.440 billion yuan, up 7.82% year-on-year, and the net profit attributable to shareholders was 1.885 billion yuan, reflecting a 15.12% increase year-on-year, overall in line with expectations [5][6] Summary by Relevant Sections Financial Performance - In H1 2024, the company reported revenue of 41.201 billion yuan, with a gross profit of 13.440 billion yuan and a net profit of 1.885 billion yuan, all showing positive year-on-year growth [5] - The company's gross margin improved to 32.62%, up 2.15 percentage points year-on-year, while the net profit margin increased to 4.58%, up 0.57 percentage points year-on-year [5] Business Segments - **Instant Noodles**: Revenue from instant noodles was 13.814 billion yuan, down 0.98% year-on-year, accounting for 33.5% of total revenue. The gross margin for this segment improved to 27.05%, with a net profit margin of 6.15% [5] - **Beverages**: The beverage segment generated revenue of 27.065 billion yuan, up 1.73% year-on-year, with tea beverages showing a significant growth of 13%. The gross margin for beverages increased to 35.24%, and the net profit margin rose to 5.41% [5] Profitability and Dividends - The company has shown strong profitability with a net cash flow from operations of 3.51 billion yuan, up 23.46% year-on-year. The company has a cash balance of 10.791 billion yuan, indicating a positive outlook for dividends [5] Earnings Forecast - The company is expected to achieve revenues of 85.082 billion yuan, 88.970 billion yuan, and 92.485 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 3.581 billion yuan, 3.872 billion yuan, and 4.165 billion yuan [5][6]

Investment Rating - The report maintains a "Buy" rating for Tingyi (Cayman Islands) Holding Corp (0322) [2][4] Core Views - Non-GAAP net profit exceeded expectations, with significant improvement in gross margin [4] - Tea beverage segment performed exceptionally well [4] - Current stock price corresponds to a 2024 PE of 15X [4] Financial Performance - 1H24 revenue reached RMB 41.2 billion, up 0.7% YoY [4] - 1H24 EBITDA was RMB 4.825 billion, up 12.2% YoY [4] - 1H24 net profit attributable to shareholders was RMB 1.885 billion, up 15.1% YoY [4] - 1H24 non-GAAP net profit was RMB 1.718 billion, up 43.33% YoY [4] - 1H24 gross margin improved to 32.6%, up 2.1 percentage points YoY [4] Business Segment Analysis Instant Noodles - 1H24 revenue was RMB 13.814 billion, down 1% YoY [4] - Cup noodles revenue: RMB 6.857 billion, up 6.3% YoY [4] - Premium bagged noodles revenue: RMB 5.485 billion, down 5.5% YoY [4] - Mid-priced bagged noodles revenue: RMB 1.271 billion, down 13.8% YoY [4] - Snack noodles and others revenue: RMB 201 million, down 9.2% YoY [4] Beverages - 1H24 revenue was RMB 27.065 billion, up 1.7% YoY [4] - Tea beverages revenue: RMB 11.393 billion, up 13% YoY [4] - Packaged water revenue: RMB 2.53 billion, down 5.6% YoY [4] - Juice revenue: RMB 3.398 billion, down 10.1% YoY [4] - Carbonated drinks and others revenue: RMB 9.745 billion, down 3.2% YoY [4] Financial Projections - 2024E revenue: RMB 84.699 billion, up 5% YoY [6] - 2024E net profit: RMB 3.319 billion, up 6% YoY [6] - 2024E PE: 14.74X [6] - 2025E revenue: RMB 88.251 billion, up 4% YoY [6] - 2025E net profit: RMB 3.511 billion, up 6% YoY [6] - 2025E PE: 13.94X [6] - 2026E revenue: RMB 91.644 billion, up 4% YoY [6] - 2026E net profit: RMB 3.874 billion, up 10% YoY [6] - 2026E PE: 12.63X [6] Market Data - Current stock price: HKD 9.54 [5] - 52-week price range: HKD 7.15 - 11.86 [5] - Current market capitalization: HKD 53.753 billion [5]

Financial Performance - For the six months ended June 30, 2024, the revenue was RMB 41,201,208 thousand, representing a 0.7% increase compared to RMB 40,907,456 thousand in 2023[3] - The gross profit margin improved to 32.6%, up by 2.1 percentage points from 30.5% in the previous year[3] - The group's gross profit increased by 7.8% to RMB 13,439,915 thousand, compared to RMB 12,465,643 thousand in 2023[3] - EBITDA for the period rose by 12.2% to RMB 4,824,605 thousand, up from RMB 4,301,711 thousand in the same period last year[3] - Net profit for the period was RMB 2,235,065 thousand, a 16.2% increase from RMB 1,922,879 thousand in 2023[3] - Profit attributable to shareholders increased by 15.1% to RMB 1,885,310 thousand, compared to RMB 1,637,670 thousand in the previous year[3] Cash and Liquidity - Cash and bank deposits as of June 30, 2024, amounted to RMB 17,930,285 thousand, an increase of RMB 3,191,904 thousand from December 31, 2023[3] - The net debt to equity ratio stood at -23.0%, indicating a strong liquidity position[3] - The company reported a net cash inflow from operating activities of 3.51 billion RMB during the period, with net cash outflow from investing activities at 71 million RMB[55] - The company emphasized a prudent cash strategy, effectively controlling capital expenditures and promoting asset activation, which is expected to yield stable cash inflows[55] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 56,019,751 thousand, compared to RMB 53,149,654 thousand at the end of 2023[12] - Total liabilities increased to RMB 40,250,703 thousand from RMB 35,927,410 thousand in the previous year[12] - The total assets as of June 30, 2024, amounted to RMB 56,019,751 thousand, an increase from RMB 53,149,654 thousand as of December 31, 2023[18][20] - The total liabilities as of June 30, 2024, were RMB 40,250,703 thousand, compared to RMB 35,927,410 thousand as of December 31, 2023, indicating an increase of 12.9%[18][20] Segment Performance - The segment profit (before tax) for the instant noodles division was RMB 1,128,516 thousand for the six months ended June 30, 2024, compared to RMB 1,090,990 thousand for the same period in 2023, reflecting a growth of 3.5%[15][16][23] - The beverage segment reported a profit (before tax) of RMB 1,988,956 thousand for the six months ended June 30, 2024, up from RMB 1,558,803 thousand in the same period of 2023, marking an increase of 27.6%[15][16][23] - Instant noodle revenue declined by 1.0% to RMB 13.814 billion, accounting for 33.5% of total revenue[39] - Beverage revenue increased by 1.7% to RMB 27.065 billion, representing 65.7% of total revenue[39] Tax and Expenses - The company reported a tax expense of RMB 809,130 thousand for the six months ended June 30, 2024, compared to RMB 690,497 thousand for the same period in 2023, which is an increase of 17.1%[23] - The financial costs for the six months ended June 30, 2024, were RMB 214,229 thousand, a decrease from RMB 264,353 thousand in the same period of 2023, reflecting a reduction of 19%[23] Product Development and Market Strategy - The company launched several new products in the beverage category, including sugar-free teas, to align with the health trend, driving growth in the ready-to-drink tea segment[48] - The company actively expanded its product offerings across various price points and flavors to meet diverse consumer demands in the instant noodle market[43] - The company is focusing on developing high-quality, health-oriented products to cater to the growing middle-class demand in the premium noodle segment[45] - The beverage segment aims to accelerate the establishment of scale advantages and focus on core products while expanding innovative offerings to meet diverse consumer needs[64] Corporate Governance and Risk Management - The audit committee consists of three independent non-executive directors, with Mr. Li Changfu as the chairman, who recently reviewed the group's performance during the period[69] - The group has established a risk management framework based on the COSO model, focusing on monitoring environment, risk assessment, control activities, information and communication, and monitoring activities[70] - As of June 30, 2024, the group has implemented a comprehensive self-assessment system for internal controls, ensuring full coverage of management cycles[72] Stock Options - No stock options were granted under the 2008 Stock Option Plan during the six months ending June 30, 2024, with a total of 24,859,000 options remaining unexercised[77] - The 2018 Stock Option Plan was adopted with a total of 8,104,000 options granted, with an exercise price of HKD 16.18, valid until April 2028[78] - As of June 30, 2024, a total of 6,263,000 stock options were granted under the 2018 stock option plan, with 3,785,000 options canceled and 2,478,000 options remaining unexercised[80] - No stock options granted under the 2018 stock option plan were exercised during the six-month period ending June 30, 2024[80]

Investment Rating - The investment rating for the company is "Buy (Initiation)" [3] Core Insights - The company, Master Kong, is a leading player in both the instant noodle and beverage industries in China, holding market shares of 45.7% and 43.4% respectively in 2021. The company has a robust product matrix and a strong distribution network, along with notable performance in R&D, pricing strategies, marketing, and cost control. It has maintained a high dividend payout ratio of no less than 98% from 2018 to 2023, indicating a commitment to returning value to shareholders. In the short term, the company has raised prices for its instant noodles and beverages while raw material costs remain stable, suggesting promising performance ahead [1][4][6]. Summary by Sections Company Overview - Master Kong is a leading enterprise in the instant noodle and beverage sectors, also serving as the exclusive manufacturer and distributor for brands like Pepsi and Starbucks in China. The company has established a strong brand presence since its inception in the 1990s and has a diverse product range including container noodles, bagged noodles, ready-to-drink tea, and carbonated beverages. Its extensive sales channels effectively cover lower-tier markets, ensuring high product circulation and turnover efficiency [4][13]. Industry Situation - The instant noodle industry in China is undergoing a transformation characterized by premiumization and a shift towards sugar-free products. The market has seen growth driven by urbanization and the pandemic, although health consciousness and the rise of food delivery services have posed challenges. The beverage sector, particularly ready-to-drink tea, is experiencing a surge in demand for sugar-free options, with significant growth potential compared to Japan's market [4][24]. Core Value - Master Kong demonstrates strong operational management across various dimensions, maintaining a stable high market share in both instant noodles and beverages with continuous revenue growth over the past seven years. The company employs flexible pricing strategies and effective cost management to sustain profit levels. Its net profit and operating cash flow are stable, with substantial cash reserves supporting its high dividend payouts, reinforcing its leadership position [4][8][9]. Earnings Forecast, Valuation, and Rating - The company is projected to achieve revenues of 850.82 billion, 889.70 billion, and 924.85 billion yuan for the years 2024 to 2026, with year-on-year growth rates of 5.80%, 4.57%, and 3.95% respectively. The net profit attributable to shareholders is expected to be 34.71 billion, 36.41 billion, and 37.76 billion yuan, with growth rates of 11.33%, 4.92%, and 3.70%. The earnings per share (EPS) are forecasted to be 0.62, 0.65, and 0.67 yuan per share, with a three-year compound annual growth rate (CAGR) of 6.60%. Given the company's solid market position and consistent high dividends, it is rated as "Buy" [8][9].

Investment Rating - The report assigns an "Accumulate" rating to the company [1][7]. Core Views - The company is expected to maintain a net profit CAGR of around 8% from 2024E to 2026E, with a current dividend yield of 6% [3][7]. - The company has a strong market position in the instant noodle and beverage sectors, with a robust brand pricing power and a diversified product portfolio [3][7]. - The new consumption trends are driving industry expansion, with stable growth in instant noodles and diversified beverage offerings [3][7]. Summary by Sections Investment Recommendations - The company has consistently provided high shareholder returns, maintaining a dividend payout ratio of 100% or more, with a current dividend yield of 6% [3][7]. - The company has developed several billion-dollar products and has a strong brand pricing capability [3][7]. - The expected EPS for 2024, 2025, and 2026 is 0.61, 0.65, and 0.70 CNY respectively, with a current PE ratio of 14X for 2024 [3][7]. Company Overview - Founded in 1992, the company has grown significantly, achieving revenue of 804.2 billion CNY and a profit of 31 billion CNY by 2023 [3][8]. - The main revenue sources are instant noodles (40%) and beverages (60%) [3][12]. - The company has maintained a gross margin around 30% and a net margin fluctuating between 2% and 7% [3][12]. Competitive Advantages - The company holds a leading market share in the instant noodle sector (approximately 45%) and in the RTD tea market (approximately 50%) [3][19]. - The company has a well-established distribution network with over 4 million retail outlets, significantly surpassing competitors [3][19]. - The company has demonstrated strong brand pricing power, having raised prices multiple times over the past five years [3][24][26]. Growth Potential - The company is expected to see stable growth in the instant noodle segment and moderate growth in the beverage segment, driven by new consumption trends and product innovations [3][7]. - The anticipated CAGR for revenue from 2024 to 2026 is around 4% [3][7]. - The company is well-positioned to benefit from the increasing demand for convenient food options and health-conscious beverages [3][12].