JONJEE(SH:600872) Huaan Securities·2024-08-09 08:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported its 2024 semi-annual results, with Q2 revenue at 1.134 billion (down 12%) and net profit attributable to shareholders at 111 million (up 107%) [1] - For H1, revenue was 2.618 billion (down 1.4%) and net profit attributable to shareholders was 350 million (up 124.2%) [1] - The performance aligns with previous forecasts, but demand remains weak across multiple product categories [1] - The company is expected to see gradual improvement in revenue in H2 as channel efficiency is anticipated to enhance [1] Financial Performance - Q2 gross margin was 36.17%, an increase of 3.6 percentage points year-on-year, attributed to cost reduction and optimized procurement [1] - H1 non-net profit was 339 million (up 14.5%) [1] - The company plans to optimize sales expenses in H2, which is expected to lead to profit release [1] Product and Regional Performance - Q2 revenue by product: soy sauce 611 million (down 22%), chicken essence 146 million (down 15%), cooking oil 114 million (up 29%), and other categories 129 million (down 31%) [1] - Q2 revenue by region: East 19% down, South 11% down, Central and Western 25% down, North 31% down, with significant impact from reforms in the North [1] - The company added 104 new distributors in Q2, achieving a development rate of 95% in prefecture-level cities and 70% in county-level cities [1] Earnings Forecast - The earnings forecast has been adjusted, with expected total revenue for 2024-2026 at 5.57 billion, 6.132 billion, and 6.836 billion respectively, reflecting year-on-year growth of 8.4%, 10.1%, and 11.5% [1][4] - Expected net profit attributable to shareholders for the same period is 725 million, 884 million, and 1.095 billion, with year-on-year changes of -57.3%, 21.9%, and 23.9% [1][4]