SIRIO(300791) 太平洋·2024-08-15 07:00Investment Rating - Buy/Maintain rating for Xianle Health (300791) with a target price of 50 CNY, compared to the previous closing price of 24.61 CNY [2] Core Views - Xianle Health's Q2 2024 performance met expectations, with strong internal profitability maintained [2] - The company achieved revenue of 1.99 billion CNY in H1 2024, a 28.9% YoY increase, and net profit attributable to shareholders of 154 million CNY, up 52.7% YoY [4] - Q2 2024 revenue was 1.039 billion CNY, a 23.3% YoY increase, with net profit attributable to shareholders of 91 million CNY, up 27.4% YoY [4] Regional Performance - In H1 2024, China/Europe/America/Emerging markets achieved revenues of 830/290/730/450 million CNY, with YoY growth of 4.2%/13.8%/65.4%/185.7% respectively [4] - Americas region showed strong growth due to synergy with BF, with soft candy customers and new projects progressing smoothly [4] - Europe maintained stable growth through increased market share with key clients and expansion in Eastern and Southern Europe [4] Product and Profitability - Gross margin improved by 2.6 percentage points to 32.1% in H1 2024, driven by higher-margin soft candy products and better pricing strategies [4] - Internal gross margin increased by 2.8 percentage points, with cost compression through global procurement strategies [4] - BF's gross margin improved gradually as production capacity increased and cost efficiency improved [4] Financial Projections - Expected revenue for 2024-2026 is 4.35/4.99/5.67 billion CNY, with YoY growth of 22%/15%/15% [4] - Net profit attributable to shareholders is projected to be 390/480/590 million CNY for 2024-2026, with YoY growth of 40%/23%/22% [4] - PE ratios for 2024-2026 are estimated at 15/12/10X [4] Strategic Focus - Domestic strategy focuses on deepening high-value customer relationships and capturing structural opportunities in the industry [4] - Europe will continue to leverage key clients and expand in emerging markets like Southern and Eastern Europe [4] - Americas region is expected to see strong performance as BF's production lines become operational and synergies with US operations strengthen [4]