By-health(SZ:300146) GOLDEN SUN SECURITIES·2024-08-06 10:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on expected earnings growth and market conditions [2][4]. Core Views - The company experienced a revenue decline of 17.6% year-on-year in H1 2024, with a total revenue of 4.61 billion yuan and a net profit of 0.89 billion yuan, down 42.3% year-on-year [1]. - The report highlights a weak recovery in demand and high competition in the industry, which has put pressure on growth despite the company's long-term strategic focus [1]. - The company is expected to improve operational efficiency and product offerings in the medium to long term, despite short-term challenges [1]. Financial Performance Summary - Revenue: In 2024, the company is projected to generate revenue of 8.05 billion yuan, a decrease of 14.4% compared to 2023 [3]. - Net Profit: The forecasted net profit for 2024 is 1.20 billion yuan, reflecting a year-on-year decline of 31.5% [3]. - Earnings Per Share (EPS): The expected EPS for 2024 is 0.70 yuan, down from 1.03 yuan in 2023 [3]. - Profitability Ratios: The net profit margin is projected to decrease to 14.9% in 2024 from 18.6% in 2023 [3]. Market and Competitive Landscape - The report notes that the industry is facing high competition, which has led to a decrease in gross margins, with Q2 2024 gross margin at 66.8%, down 3.6 percentage points year-on-year [1]. - The company’s online and offline sales channels saw declines of 20.5% and 15.8% respectively in H1 2024, indicating challenges in consumer demand [1]. Strategic Outlook - The company is committed to a strong technology and brand strategy, aiming to enhance product offerings and operational efficiency in the long term [1]. - The report anticipates that the company's internal adjustments will gradually yield benefits, positioning it well for future growth in the health supplement sector [1].