Fuling Zhacai(SZ:002507) Haitong Securities·2024-09-01 04:39Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a total revenue of 1.306 billion yuan for the first half of 2024, a year-on-year decrease of 2.3%, with a net profit attributable to the parent company of 448 million yuan, down 4.7% year-on-year [6] - The revenue from pickled vegetables has shown signs of recovery, with a slight increase of 0.5% year-on-year in H1 2024, while other product categories like pickled cabbage and radish have seen declines [6] - The company has optimized its distribution network, reducing the number of distributors by 424 to 2815, which has contributed to better price control and market order [6] - Raw material costs have decreased, leading to an expected gradual release of profit elasticity, with a gross margin of 50.9% in H1 2024, down 2.19 percentage points year-on-year [6][7] - The company has implemented organizational optimizations to enhance management efficiency, reducing the number of organizational levels from 32 to 24 [7] Financial Performance Summary - For 2024, the company is projected to have an EPS of 0.72 yuan, with expected revenues of 2.455 billion yuan, a slight increase from 2023 [8][10] - The gross margin is expected to stabilize around 49.9% in 2024, with a gradual improvement anticipated in subsequent years [10] - The net profit is forecasted to be 829 million yuan in 2024, with a growth rate of 0.2% year-on-year [10] - The company has shown strong operating cash flow performance, with a net cash flow of 1.65 billion yuan in H1 2024, up 1034.8% year-on-year [6]