Toly Bread(SH:603866) Founder Securities·2024-08-12 15:35Investment Rating - The report maintains a "Recommended" rating for the company, expecting a relative increase of over 10% compared to the benchmark index in the next 12 months [6]. Core Insights - The company has shown a controlled revenue decline of -0.6% year-on-year for the first half of 2024, with a significant improvement in profitability, achieving a net profit attributable to shareholders of 2.9 billion yuan, up 5.79% year-on-year [1]. - In Q2 2024, the company reported a revenue increase of 14.24% quarter-on-quarter, with a net profit of 1.75 billion yuan, reflecting a year-on-year growth of 12.14% [1]. - The company’s product line, particularly bread products, has seen a revenue increase of 47.93% year-on-year, indicating strong growth in new product categories [1]. - The company is expanding its national market layout, with a focus on improving operational efficiency and market share in key regions [1]. Financial Performance Summary - The company is projected to achieve total revenues of 69.12 billion yuan in 2024, with a year-on-year growth of 2.26%, and net profits of 6.08 billion yuan, reflecting a growth of 5.92% [3]. - The earnings per share (EPS) is expected to increase from 0.36 yuan in 2023 to 0.38 yuan in 2024, with a projected price-to-earnings (PE) ratio of 15.2 for 2024 [3]. - The gross profit margin is expected to improve, with a notable increase in profitability driven by cost control measures and favorable raw material prices [1][3].