Toly Bread(SH:603866) CMS·2024-08-13 01:35Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1][2]. Core Views - The company has experienced a decline in revenue but has managed to improve its net profit margin through cost control and efficiency measures. The expectation is for demand to gradually recover in the second half of the year, with a focus on profit and cash flow growth [2][3]. Summary by Relevant Sections Financial Performance - In Q2 2024, the company's revenue, profit, and net profit excluding non-recurring items decreased by 6.33%, but net profit increased by 14.24% and net profit excluding non-recurring items increased by 12.14% year-on-year [1][2]. - The company reported total revenue of 1.621 billion yuan in Q2 2024, down 6.33% year-on-year, while net profit was 175 million yuan, up 14.24% year-on-year [1][3]. - The gross profit margin improved to 25.06%, an increase of 1.98 percentage points year-on-year, attributed to a decrease in return rates and production efficiency [1][2]. Market Dynamics - Demand recovery is weak, with the main business under pressure. However, new products such as cocoa croissants and egg rolls are showing rapid growth [1][2]. - The company is adjusting its production capacity in response to market dynamics, particularly in regions like South China and Southwest China [1][2]. Earnings Forecast - The EPS forecast for 2024 and 2025 has been adjusted to 0.38 yuan [1][2]. - Long-term, the company is focusing on national capacity layout and improving profitability and cash flow [1][2]. Shareholder Information - The total share capital is 1.6 billion shares, with a market capitalization of 9.2 billion yuan [1][3]. - The major shareholder, Wu Xuequn, holds a 24.34% stake in the company [1][3].