Toly Bread(SH:603866) Minsheng Securities·2024-08-13 06:32Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company's main business is slightly under pressure, but profitability is recovering. In H1 2024, the company achieved revenue of 3.021 billion yuan, a year-on-year decrease of 5.79%, and a net profit attributable to shareholders of 290 million yuan, a decrease of 0.60% year-on-year [1]. - The company is steadily advancing its national layout while focusing on demand recovery. It is enhancing its sales network in mature markets and exploring potential in emerging markets [2]. - The company is expected to see revenue growth from 6.899 billion yuan in 2024 to 7.764 billion yuan in 2026, with net profit increasing from 613 million yuan to 718 million yuan during the same period [3]. Financial Performance - In H1 2024, the company achieved a gross margin of 24.15%, improving to 25.06% in Q2 2024, with a notable increase in net profit margin to 10.78% [2]. - The company’s revenue from bread and pastries in H1 2024 was 2.985 billion yuan, down 5.37% year-on-year, while new products showed significant growth [1]. - The company’s expenses have been optimized, with sales, management, R&D, and financial expense ratios improving in Q2 2024 compared to the previous year [2].