Yanghe(SZ:002304) Guohai Securities·2024-08-31 03:06Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is undergoing adjustments that are reshaping its growth momentum, with high dividends enhancing its safety margin [1] - The company has achieved stable product structure with an increase in the proportion of sales from outside its home province [2] - The company is focusing on a dual-brand, multi-brand, and multi-category development strategy, which is expected to drive future growth [4][5] Financial Performance - For H1 2024, the company reported total revenue of 22.876 billion yuan, a year-on-year increase of 4.58%, and a net profit attributable to shareholders of 7.947 billion yuan, up 1.08% year-on-year [4] - The second quarter of 2024 saw a decline in revenue to 6.621 billion yuan, down 3.02% year-on-year, and a net profit of 1.892 billion yuan, down 9.75% year-on-year [4] - The company's gross margin decreased by 1.41 percentage points to 73.67% in Q2 2024, primarily due to increased sales expenses [5] Dividend Policy - The company announced a dividend plan to distribute no less than 70% of its net profit attributable to shareholders, with a minimum of 7 billion yuan annually from 2024 to 2026, resulting in a dividend yield exceeding 6% as of August 29, 2024 [6] Growth Forecast - The company is projected to achieve revenues of 34.925 billion yuan, 36.706 billion yuan, and 38.486 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 10.259 billion yuan, 10.799 billion yuan, and 11.304 billion yuan for the same years [7][8] - The report anticipates a stable return on equity (ROE) of around 19% for the next few years, with a slight decline to 18% by 2026 [8]