LAO BAI GAN JIU(SH:600559) Huaxin Securities·2024-08-29 02:12Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Views - The company has demonstrated significant cost reduction and efficiency improvements, leading to profits exceeding expectations [2] - Revenue for H1 2024 reached 2.47 billion yuan, a year-on-year increase of 10.65%, while net profit attributable to shareholders was 304 million yuan, up 40.25% year-on-year [2] - The company continues to enhance its cost-effectiveness ratio, with gross and net profit margins for H1 2024 at 65.84% and 12.32%, respectively [2] Financial Performance - H1 2024 total revenue was 2.47 billion yuan, with a net profit of 304 million yuan, and a non-recurring net profit of 278 million yuan [2] - In Q2 2024, total revenue was 1.34 billion yuan, with a net profit of 168 million yuan, reflecting a year-on-year increase of 46.69% [2] - The company’s cash flow from operating activities for H1 2024 was 223 million yuan, compared to 169 million yuan in the same period last year [2] Product and Market Development - The company has seen a continuous improvement in product structure, with revenue from various divisions showing strong growth [2] - H1 2024 revenue from direct sales channels grew significantly, with total revenue from distributors, direct sales, and online sales at 2.29 billion yuan, 129 million yuan, and 31 million yuan, respectively [3] - The company has expanded its brand influence, with total distributors at 11,423, a slight decrease from the end of 2023 [3] Earnings Forecast - The earnings per share (EPS) for 2024-2026 are adjusted to 0.92, 1.11, and 1.30 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 18, 15, and 13 times [4]