SCSF(SH:600779) EBSCN·2024-07-30 00:01Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported Q2 results that exceeded expectations, with total revenue of 7.85 billion yuan in Q2, a year-on-year increase of 16.62%, and a net profit of 0.56 billion yuan, up 29.6% year-on-year [2] - The high-end product "Zhen Niang Ba Hao" continues to show strong growth, with a sales revenue of 7.20 billion yuan in Q2, reflecting a 14.70% increase year-on-year [2] - The company is expected to enhance its market share in banquet scenarios and is focusing on cultivating key customers in top cities [3] Summary by Sections Financial Performance - For H1 2024, total revenue reached 17.19 billion yuan, a 12.57% increase year-on-year, and net profit was 2.42 billion yuan, up 19.55% year-on-year [2] - Q2 2024 saw a gross margin of 81.55%, with a net profit margin of 7.15%, reflecting a year-on-year increase of 0.72 percentage points [2] - The company’s marketing expense ratio improved significantly, decreasing by 8.9 percentage points in Q2 [2] Product Performance - High-end and mid-range product revenues for H1 2024 were 15.17 billion yuan and 0.97 billion yuan, respectively, with year-on-year growth of 6.13% and 12.78% [2] - The sales volume for high-end products increased, contributing to a significant rise in average selling price [2] Market Strategy - The company plans to continue its focus on high-end products and expand its presence in emerging markets like Inner Mongolia [3] - The new general manager's appointment is anticipated to bring more operational strategies to fruition [3] Earnings Forecast and Valuation - The profit forecast for 2024-2026 is set at 14.3 billion yuan, 16.4 billion yuan, and 18.4 billion yuan, translating to EPS of 2.92, 3.36, and 3.78 yuan, respectively [3] - The current stock price corresponds to a P/E ratio of 12, 11, and 10 for the respective years [3]