HAI TIAN(603288) 天风证券·2024-08-31 14:10Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within the next six months [5][12]. Core Views - The company is expected to achieve steady revenue growth, benefiting from cost reductions that will enhance profit margins. The introduction of a five-year employee stock ownership plan is anticipated to boost employee motivation [2][5]. Financial Performance Summary - For the first half of 2024, the company reported revenue of 141.56 billion yuan, a year-on-year increase of 9.18%, and a net profit attributable to shareholders of 34.53 billion yuan, up 11.52% year-on-year. In Q2 2024, revenue reached 64.62 billion yuan, with a net profit of 15.34 billion yuan, reflecting a year-on-year growth of 7.98% and 11.12% respectively [1][2]. - The company experienced growth across all product categories, with significant increases in the revenue of soy sauce, seasoning sauces, oyster sauce, and other products in Q2 2024 [1]. - Online sales maintained high growth, with a notable increase in the southern region's revenue. The company is actively enhancing its channel construction and transformation [1][2]. Profitability and Cost Management - The gross margin and net margin improved, with gross margin increasing by 1.60 percentage points to 36.33% and net margin rising by 0.73 percentage points to 23.79% in Q2 2024. The increase in gross margin is primarily attributed to a decline in raw material prices [1][2]. - The report indicates an increase in sales, management, and financial expense ratios, mainly due to higher labor, advertising, and promotional expenditures [1]. Financial Forecast - The company’s revenue projections for 2024 to 2026 are adjusted to 268.14 billion yuan, 291.79 billion yuan, and 317.00 billion yuan respectively, with a consistent growth rate of 9% [2][3]. - The net profit attributable to shareholders is forecasted to be 62.42 billion yuan, 68.65 billion yuan, and 75.20 billion yuan for the same period, with growth rates of 11% [2][3]. Key Financial Metrics - The company’s earnings per share (EPS) for 2024 is projected at 1.12 yuan, with a price-to-earnings (P/E) ratio of 32.96 [3][4]. - The total assets are expected to grow from 38,423.52 million yuan in 2023 to 41,564.55 million yuan in 2024 [8].