LONGDA(SZ:002726) Huafu Securities·2024-09-01 12:01Investment Rating - The report maintains a "Hold" rating for the company [6][10] Core Views - The company has shown a significant improvement in profitability, achieving a turnaround to profitability in H1 2024 with a net profit of 0.58 billion yuan, compared to a loss in the previous year [2][4] - The company is focusing on optimizing its business structure and improving cost efficiency, which has contributed to the recovery in profitability [4][8] - Despite a challenging demand environment impacting revenue growth, the company is expected to continue improving its profitability through strategic focus on its core food business and product innovation [4][8] Financial Data Summary - Revenue: The company reported revenues of 50.44 billion yuan in H1 2024, down 25.01% year-on-year [2] - Net Profit: The net profit for H1 2024 was 0.58 billion yuan, marking a return to profitability [2] - Gross Margin: The gross margin for the food business improved to 12.58%, up 3.43 percentage points year-on-year [4] - Earnings Forecast: The forecasted net profits for 2024, 2025, and 2026 are 1.26 billion yuan, 2.04 billion yuan, and 2.49 billion yuan respectively, reflecting growth rates of 108%, 62%, and 22% [4][8] - Earnings Per Share (EPS): The EPS is projected to be 0.12 yuan in 2024, 0.19 yuan in 2025, and 0.23 yuan in 2026 [4][8] Business Performance Summary - Product Performance: The revenue from fresh and frozen meat, cooked food products, and prepared foods showed varied performance, with fresh and frozen meat down 17.04% and prepared foods up 1.12% [3] - Customer Segmentation: The B-end customers showed a growth rate of about 20%, while C-end online sales increased by over 20% [3] - Regional Performance: Revenue performance varied significantly across regions, with some areas experiencing declines of over 40% [3]