BIYI(SH:603215)2024-08-11 09:02Investment Rating - The report maintains an "Outperform" rating for the company [1][2]. Core Views - The company's Q2 revenue and performance slightly exceeded expectations, with Q2 revenue reaching 540 million yuan, a year-on-year increase of 14%, while the net profit attributable to the parent company was 58 million yuan, a year-on-year decrease of 28% [1][2]. - The company is actively expanding its product categories and customer base, particularly in the air fryer segment, and is accelerating overseas capacity construction to unlock growth potential [1][2]. - The company's profitability showed significant improvement quarter-on-quarter, with a gross margin of 19.14% in Q2, up 6.19 percentage points from Q1, despite a year-on-year decline [2]. Financial Summary - For H1 2024, the company achieved total revenue of 860 million yuan, a year-on-year growth of 1%, and a net profit of 68 million yuan, a year-on-year decline of 46% [3]. - The projected net profits for 2024-2026 are 201 million yuan, 232 million yuan, and 266 million yuan, respectively, with corresponding P/E ratios of 12x, 11x, and 9x [2][3]. - The company’s gross margin is expected to stabilize around 20.8% from 2024 onwards, with a return on equity (ROE) projected to be 16.1% in 2024 [3].