JINZAI FOOD GROUP CO.(SZ:003000) Huaxin Securities·2024-08-22 23:30Investment Rating - The report maintains a "Buy" investment rating for the company [1][2]. Core Views - The company has shown continuous revenue growth and improved profitability, with a total revenue of 1.13 billion yuan in H1 2024, representing a 22% year-on-year increase. The net profit attributable to shareholders reached 143 million yuan, up 72% year-on-year [1]. - The company is focusing on the rapid growth of its quail egg product line and the performance of its snack channels, with significant growth in both online and offline sales channels [1][2]. Summary by Sections Financial Performance - In H1 2024, the company's total revenue was 1.13 billion yuan, with a net profit of 143 million yuan, reflecting a 72% increase year-on-year. The gross profit margin improved by 4 percentage points to 30.40% due to a decrease in raw material prices [1]. - The company expects a reduction in expenses in the second half of the year, with a net profit margin increase of 4 percentage points to 12.84% [1]. Product Performance - Revenue from fish products and bean products in H1 2024 was 703 million yuan and 111 million yuan, respectively, with year-on-year growth of 17% and 10%. The company is innovating its fish products and expanding its market presence [1]. - The quail egg product line has seen significant growth, with revenue reaching 258 million yuan, a 51% increase year-on-year. The company is also focusing on developing new products to enhance brand recognition [1]. Channel Performance - In H1 2024, online and offline channel revenues were 199 million yuan and 931 million yuan, respectively, with year-on-year changes of -3% and +29%. The snack channel has shown growth exceeding 100% [1]. - The company has expanded its distributor network, with the number of distributors increasing by 24% to 3,166 by the end of H1 2024 [1]. Earnings Forecast - The company is expected to continue its growth trajectory, with projected EPS of 0.70 yuan, 0.86 yuan, and 1.05 yuan for 2024, 2025, and 2026, respectively. The current stock price corresponds to PE ratios of 15, 12, and 10 times for the respective years [2].