Shandong Teamgene Technology (603151) 华鑫证券·2024-08-18 11:00Investment Rating - The report assigns a "Neutral" investment rating to the company [1]. Core Views - The company experienced significant changes in customer structure, leading to profit performance falling short of expectations. Despite a recovery in feed demand contributing to revenue growth, the profit margins were adversely affected due to changes in customer composition and promotional activities [1][2]. - The company reported a revenue of 895 million yuan for the first half of 2024, representing a year-on-year increase of 21.40%. However, the net profit attributable to shareholders was only 23 million yuan, a decline of 47.36% year-on-year [1]. - The report anticipates that the company will focus on revenue expansion in the second half of 2024, with projected revenues of 2.253 billion, 3.127 billion, and 4.251 billion yuan for 2024, 2025, and 2026 respectively [2][4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 895 million yuan, a year-on-year increase of 21.40%. The net profit attributable to shareholders was 23 million yuan, down 47.36% year-on-year, and the net profit after deducting non-recurring gains and losses was 21 million yuan, down 52.45% [1]. - The second quarter of 2024 saw a revenue of 483 million yuan, a year-on-year increase of 38.79%, but the net profit attributable to shareholders was only 3 million yuan, a decline of 86.36% year-on-year [1]. Customer Structure and Profitability - The decline in profit margins was attributed to three main factors: an increase in cooperation with large-scale farming customers, a decrease in the proportion of smallholder customers, and a lack of enthusiasm for restocking among family farms, which led to promotional activities that reduced unit sales prices [1]. - The gross profit margin for the first half of 2024 was 10.78%, a decrease of 3.54 percentage points year-on-year, while the net profit margin was 2.62%, down 3.42 percentage points year-on-year [1]. Future Outlook - The report predicts that the company will prioritize revenue growth in the competitive feed industry, with expectations of increased sales volume and revenue in the second half of 2024. However, profit margins are expected to decline due to intensified competition [2][4]. - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 are 0.50, 0.61, and 0.72 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 19.3, 16.0, and 13.4 times [2][4].