SCSF(SH:600779) Tianfeng Securities·2024-08-07 10:00Investment Rating - The report maintains a "Buy" rating for the company with a target price indicating an expected return of over 20% within the next six months [2][10]. Core Insights - The company's Q2 performance slightly exceeded expectations, driven by high-end liquor sales, with revenue and net profit showing year-on-year increases of 16.62% and 29.60%, respectively [1]. - The "Hundred Cities, Ten Thousand Stores" initiative continues to show positive effects, with the flagship product, Zhen Niang No. 8, being a core growth driver [1]. - The company is focusing on deepening its presence in 100 key cities to explore growth opportunities, despite a reduction in the number of distributors [1]. Financial Performance - For Q2 2024, the company reported revenues of 785 million yuan, with a net profit of 56 million yuan and a non-recurring net profit of 74 million yuan, reflecting significant year-on-year growth [1]. - The revenue from the liquor business was 742 million yuan, with high-end products accounting for 96.94% of total sales [1]. - The gross margin for Q2 was 81.55%, with a slight year-on-year decrease of 0.02 percentage points, while the net profit margin increased by 0.72 percentage points to 7.15% [1]. Future Projections - The company has adjusted its revenue forecasts for 2024-2026, now expecting revenues of 5.40 billion, 5.96 billion, and 6.50 billion yuan, respectively [1]. - Corresponding net profits are projected to be 1.39 billion, 1.58 billion, and 1.75 billion yuan for the same period, with price-to-earnings ratios of 12.9X, 11.4X, and 10.2X [1].