五芳斋：公司事件点评报告：阶段性调整经营节奏，坚持推进渠道变革

Investment Rating - The investment rating for the company is "Buy (Maintain)" [1] Core Views - The company reported a revenue of 1.581 billion yuan for H1 2024, a decrease of 15% year-on-year, primarily due to external environmental pressures [1] - The net profit attributable to shareholders for H1 2024 was 234 million yuan, down 9% year-on-year, while the net profit after deducting non-recurring gains and losses was 226 million yuan, also down 9% [1] - In Q2 2024, the company's revenue was 1.374 billion yuan, a decrease of 17% year-on-year, with a net profit of 303 million yuan, down 5% year-on-year [1] - The company is focusing on inventory reduction and cautious planning to navigate the challenging market environment [1] Summary by Sections Financial Performance - The company achieved a gross margin of 46.41% in Q2 2024, an increase of 4 percentage points, attributed to product structure optimization and cost reduction [1] - The net profit margin in Q2 2024 increased by 3 percentage points to 22.06% due to operational efficiency improvements [1] - The company’s revenue from zongzi (sticky rice dumplings) and other products saw declines of 17% and 14% respectively, indicating a challenging consumption environment [1][2] Strategic Initiatives - The company is actively adjusting its product pricing to maintain profitability while enhancing its brand positioning in the high-end market [1] - Plans are in place to penetrate weaker regional markets and leverage brand advantages to integrate capital and talent for new channel and product development [1] - The company is exploring channel transformations, including a shift towards interest-based e-commerce platforms and new retail business models [2] Earnings Forecast - The earnings per share (EPS) for 2024-2026 are adjusted to 0.84, 0.88, and 0.94 yuan respectively, with corresponding price-to-earnings (PE) ratios of 18, 17, and 16 times [3] - The company is expected to maintain its leadership in the zongzi market, driven by a dual focus on food and dining sectors [3]