QIANHE(603027) Huafu Securities·2024-09-01 08:18Investment Rating - The report maintains a "Buy" rating for Qianhe Flavor Industry Co., Ltd. (千禾味业) [5][9] Core Views - The company reported H1 2024 revenue of 1.589 billion yuan, a year-on-year increase of 3.78%, while net profit attributable to shareholders was 251 million yuan, a decrease of 2.38% [1] - Q2 2024 saw revenue of 694 million yuan, down 2.53% year-on-year, and net profit attributable to shareholders of 96 million yuan, down 14.16% year-on-year, indicating pressure on demand and increased competition [1][2] - The company is facing significant growth pressure in its main products, such as soy sauce and vinegar, due to weak demand and intensified competition [2][3] Summary by Sections Financial Performance - In H1 2024, the company achieved a gross margin of 35.16%, a decrease of 2.28 percentage points year-on-year, attributed to increased competition and promotional activities [3] - The total expenses increased, with Q2 2024 sales, management, R&D, and financial expense ratios showing year-on-year changes of +2.48, -0.80, +0.06, and +0.35 percentage points respectively [3] - The net profit margin for Q2 was 13.77%, down 1.87 percentage points year-on-year [3] Market Dynamics - The company’s soy sauce and vinegar products experienced revenue declines of 3.07% and 10.17% year-on-year in Q2, respectively, despite the benefits from zero-additive products and channel expansion [2] - Regional performance varied, with Q2 revenue changes in different areas: Eastern (-7.65%), Southern (+1.35%), Central (-15.63%), Northern (+17.57%), and Western (-5.10%) [2] Future Outlook - The company plans to maintain its high-end and health-oriented brand positioning while launching new high-quality products like Qianhe Matsutake Soy Sauce [3] - The second phase of the 600,000-ton seasoning production line project has begun trial production, with remaining capacity expected to be launched within the year [3] - The profit forecasts for 2024-2026 have been adjusted to 559 million, 651 million, and 752 million yuan, respectively, reflecting a year-on-year growth of 5%, 16%, and 15% [4][5]