By-health(SZ:300146) EBSCN·2024-08-06 10:01Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock in the medium term [2][3][7]. Core Insights - The company experienced a significant decline in revenue and profit in the first half of 2024, with total revenue of 4.61 billion yuan, down 17.6% year-on-year, and a net profit of 890 million yuan, down 42.3% year-on-year [3]. - The report highlights that the main brand "汤臣倍健" saw a revenue drop of 19.77% year-on-year, while the joint care brand "健力多" and "Life-Space" also faced declines [2]. - The company is focusing on new product development and strengthening offline channel advantages to drive revenue growth in the second half of the year [3]. Summary by Sections Revenue Performance - The company reported a total revenue of 4.61 billion yuan in 24H1, a decrease of 17.6% year-on-year, with a net profit of 890 million yuan, down 42.3% year-on-year [3]. - The revenue breakdown shows that the main brand "汤臣倍健" generated 2.635 billion yuan, down 19.77% year-on-year, while "健力多" and "Life-Space" also reported declines [2]. Cost and Profitability - The gross margin for 24H1 was 68.56%, down 1.76 percentage points year-on-year, primarily due to a 172.4% increase in fish oil procurement prices [2]. - The selling expense ratio increased significantly, reaching 39.49% in 24H1, up 6.82 percentage points year-on-year, attributed to rising platform costs and changes in e-commerce structure [2]. Profit Forecast and Valuation - The profit forecast for the company has been revised downwards for 2024-2026, with expected net profits of 1.229 billion yuan, 1.423 billion yuan, and 1.570 billion yuan, representing a reduction of 37% for each year [2]. - The report assigns a price-to-earnings (P/E) ratio of 18x, 16x, and 14x for 2024-2026, reflecting the company's position as a leader in the dietary supplement industry [2].