CCGB(SZ:300138) Huaxin Securities·2024-08-28 13:11Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue for H1 2024 is reported at 3.491 billion yuan, a decrease of 5% year-on-year, primarily due to the impact of cottonseed business [1] - The net profit attributable to shareholders is 100 million yuan, down 67% year-on-year, with a non-recurring net profit of 80 million yuan, down 66% [1] - The report highlights that the company's market share continues to improve despite the operational challenges caused by price declines across multiple products [1][3] Summary by Sections Financial Performance - In H1 2024, the company's revenue was 3.491 billion yuan, a decrease of 5% year-on-year, attributed to the decline in cottonseed business [1] - The net profit attributable to shareholders was 100 million yuan, down 67% year-on-year, while the non-recurring net profit was 80 million yuan, down 66% [1] - The gross margin decreased by 3 percentage points to 8.28%, mainly due to losses in the cottonseed business and insufficient price increases in chili red to cover costs [1] Product Performance - Revenue from natural pigments, spices, and nutritional products increased by 9% year-on-year to 1.583 billion yuan, with a gross margin of 16.81%, down 4 percentage points [1] - Chili red sales volume decreased by 25% to 4,454 tons, while chili extract sales volume increased by 121% to 850 tons, indicating a shift in sourcing and improved competitiveness in overseas markets [1] - The company is focusing on expanding its product range and enhancing its competitive advantages in the plant extraction business [3] Earnings Forecast - The report adjusts the EPS forecast for 2024-2026 to 0.60, 0.75, and 0.96 yuan respectively, with corresponding PE ratios of 12, 10, and 7 times [3] - The company is expected to face short-term operational pressure due to price declines, but the long-term trend of market share growth remains strong [3]