RICHEN(SH:603755) Huafu Securities·2024-08-22 05:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [9]. Core Views - The company reported a revenue of 187 million yuan for H1 2024, representing a year-on-year increase of 15.16%, and a net profit of 29 million yuan, up 20.68% year-on-year [1]. - The growth in the restaurant channel exceeded expectations, driven by continuous client retention and product innovation, with over 50% of sales coming from new products developed in the last three years [2]. - Despite a decline in gross margin to 38.05% due to increased competition and price pressures, the company managed to improve its net profit margin to 16.54% through cost optimization [3]. - The company aims to maintain its growth trajectory by focusing on innovation and expanding its product offerings, particularly in the peak seasoning sales season in H2 [3]. Financial Performance Summary - For Q2 2024, the company achieved a revenue of 96 million yuan, a 15.58% increase year-on-year, and a net profit of 16 million yuan, up 20.37% year-on-year [1]. - The gross margin for Q2 was reported at 38.05%, down 2.49 percentage points year-on-year, while the net profit margin improved by 0.66 percentage points [3]. - The company’s revenue and net profit forecasts for 2024-2026 have been adjusted to 69 million yuan, 84 million yuan, and 102 million yuan respectively, reflecting a growth rate of 22% for each year [4]. Channel Performance - Revenue growth by channel in Q2 showed significant variation: restaurant channel +37.94%, food processing -2.21%, brand customization +14.77%, direct supermarkets -14.47%, direct e-commerce +23.26%, and distributors -40.04% [2]. - The company’s regional revenue growth varied, with notable increases in South China (+60.03%) and declines in other regions [2]. Future Outlook - The company plans to continue its innovation-driven growth strategy, focusing on expanding its product range and customer base to sustain performance in the upcoming sales season [3].