Apple Group(SH:603020) Huaxin Securities·2024-08-31 10:08Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company experienced pressure on performance in the second quarter, but optimized raw material costs led to an increase in gross profit margin [1] - The company's total revenue for H1 2024 was 1.452 billion yuan, a decrease of 1% year-on-year, while the net profit attributable to shareholders was 62 million yuan, down 12% year-on-year [1] - The report highlights the stable growth of the fragrance business, while the food ingredient segment faced significant market-related challenges [1] Summary by Relevant Sections Performance Overview - In Q2 2024, the company's total revenue was 705 million yuan, a decrease of 5% year-on-year, with a net profit of 27 million yuan, down 11% year-on-year [1] - The gross profit margin increased by 2 percentage points to 17.35%, primarily due to effective cost control in fragrance raw materials [1] Business Segments - Revenue from the fragrance, flavor, and food ingredient segments in Q2 2024 was 148 million, 39 million, and 512 million yuan respectively, showing year-on-year changes of +11%, -26%, and -7% [1] - The company aims to enhance customer service and optimize the product mix in the food ingredient business to drive high-quality development [1] Profit Forecast - The company expects EPS for 2024-2026 to be 0.36, 0.42, and 0.47 yuan, with corresponding PE ratios of 18, 15, and 14 times [1]