DEEJ(SZ:000423) Xinda Securities·2024-08-22 09:00Investment Rating - The investment rating for Dong'e Ejiao (000423) is not explicitly stated in the provided content, but the report indicates a positive outlook based on revenue and profit growth [1]. Core Viewpoints - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 2.748 billion yuan (up 26.80% year-on-year) and net profit attributable to shareholders at 738 million yuan (up 39.03% year-on-year) [1]. - The core product line, Ejiao series, saw a revenue increase of 33%, indicating strong market demand and effective sales strategies [1]. - The company has initiated its first interim dividend, reflecting a commitment to shareholder returns [1]. Financial Performance Summary - For the first half of 2024, the company achieved total revenue of 2.748 billion yuan, with a year-on-year growth of 27%. The Ejiao series contributed 2.551 billion yuan, accounting for approximately 93% of total revenue [1]. - The gross profit margin improved by 3.2 percentage points year-on-year, reaching 73.54% in 2024H1, with the Ejiao series margin at 75.36% [1]. - The company forecasts revenue growth for 2024-2026, estimating revenues of 5.7 billion yuan, 6.569 billion yuan, and 7.564 billion yuan, with corresponding net profits of 1.49 billion yuan, 1.768 billion yuan, and 2.094 billion yuan [2][3]. Inventory and Sales Dynamics - The inventory cycle for key products is at a low level, with Ejiao block inventory at under 3 months, indicating efficient inventory management [1]. - Online sales for key products have seen a growth of over 30% year-on-year, reflecting strong consumer interest and effective e-commerce strategies [1]. Shareholder Returns - The company has announced a cash dividend of 11.44 yuan per 10 shares, totaling approximately 737 million yuan, which represents 110.53% of the net profit for the first half of 2024 [1].