BAIRUN CORPORATION(SZ:002568) EBSCN·2024-07-31 08:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is facing pressure from weak demand, impacting its performance, particularly in the pre-mixed cocktail segment. Attention is drawn to the upcoming whiskey product launch in Q4 2024 [1][6] - The company reported a slight decline in revenue and net profit for H1 2024, with revenue at 1.63 billion yuan, down 1.4% year-on-year, and net profit at 400 million yuan, down 8.4% year-on-year [5][6] - The report highlights the company's efforts to adapt to the current consumption environment through promotional activities and product innovation, including the launch of new flavors in its refreshing product line [6] Summary by Sections Financial Performance - H1 2024 revenue from pre-mixed cocktails was 1.431 billion yuan, a decrease of 1.42% year-on-year, with sales volume down 8.69% [5] - The company’s gross margin improved to 70.08% in H1 2024, up 4.19 percentage points year-on-year, attributed to product mix improvements [6] - The net profit margin for H1 2024 was 24.55%, down 2.00 percentage points year-on-year [6] Market Dynamics - The report notes that offline channels have seen a revenue increase of 7.03% year-on-year, while digital retail and ready-to-drink channels have experienced significant declines of 35.68% and 42.69% respectively [5][6] - The company is adjusting its distributor structure, reducing the total number of distributors from 2,164 at the beginning of the year to 2,116 by the end of June [5] Future Outlook - The company is exploring growth in the whiskey segment, with over 300,000 barrels of aged whiskey already bottled, and plans to launch whiskey-based products in Q4 2024 [6][7] - The report projects a gradual recovery in the pre-mixed cocktail industry as consumer spending improves, positioning the company to benefit from this recovery [6][7]