YanKershop(SZ:002847) Guotai Junan Securities·2024-08-09 13:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to 62.5 CNY from the previous 64.98 CNY [4][5][14]. Core Insights - The company's Q2 2024 performance met expectations, with a revenue increase of 23% year-on-year and a non-net profit growth of 1.5%, primarily impacted by stock incentive costs. After adjusting for these costs, the non-net profit growth approached 40% [4][12]. - The core logic of the company remains intact, and with the market's renewed focus on domestic demand, the valuation of the company is expected to recover [3][12]. Summary by Sections Financial Performance - For 2024-2026, the earnings per share (EPS) are projected to be 2.50 CNY, 3.29 CNY, and 4.26 CNY, reflecting year-on-year growth rates of 35.4%, 31.8%, and 29.6% respectively [4][14]. - The company’s Q2 2024 gross margin decreased by 3.08 percentage points due to a shift in channel structure, which reduced the proportion of direct sales channels [12]. Sales and Channel Strategy - The company is actively adjusting its channel structure, with direct sales, e-commerce, and distribution channels showing year-on-year revenue changes of -44%, +48%, and +35% respectively in the first half of 2024 [12]. - Key product categories, particularly egg products, have shown significant growth, with egg category revenue increasing by over 150% [12]. Market Position and Valuation - The company is expected to maintain a leading growth position within its sector, benefiting from structural opportunities in the food and beverage market [12]. - The report suggests that the current valuation of growth stocks is at the lower end of the range, and the company’s strong product capabilities and channel adjustment abilities warrant a valuation premium [4][14].