SYG(SZ:300740) Guotai Junan Securities·2024-08-01 07:01Investment Rating - The investment rating for the company is "Buy" [3] - The target price has been adjusted to 14.52 CNY from a previous forecast of 22.95 CNY [3] Core Insights - The company's performance in the first half of 2024 was below expectations, primarily due to increased brand investment leading to a rise in sales expense ratio [2][8] - Anticipation for the maturation of star brands like Yifidan and the transformation of brands such as Yuni and Dazhuidi to improve sales and profits [2] - The company reported revenue, net profit attributable to the parent, and net profit excluding non-recurring items for H1 2024 at 2.293 billion CNY, 106 million CNY, and 119 million CNY respectively, showing a year-on-year change of 0%, -26%, and -19% [8] - The gross margin increased by 4.56 percentage points to 61.48%, driven by a significant rise in the gross margin of water, milk, cream products [8] Financial Summary - The company’s total revenue for 2024 is projected at 4.569 billion CNY, with a net profit attributable to the parent of 257 million CNY [9] - The earnings per share (EPS) forecast for 2024 has been revised down to 0.66 CNY, with subsequent years projected at 0.91 CNY and 1.16 CNY [8][9] - The company’s market capitalization is approximately 4.874 billion CNY, with a current share price of 12.54 CNY [4][3] - The company’s net asset value per share is 5.51 CNY, with a price-to-book ratio of 2.3 [5]