QIANHE(SH:603027) Huachuang Securities·2024-09-02 00:03Investment Rating - The report maintains a "Recommended" rating for the company [1][6][16]. Core Views - The company's performance in H1 2024 was below expectations, with revenue of 1.589 billion yuan, a year-on-year increase of 3.78%, and a net profit of 251 million yuan, a year-on-year decrease of 2.38% [1]. - The report highlights that the company is facing increased demand pressure and intensified market competition, leading to lower-than-expected revenue [1]. - Despite external pressures, the company is expected to maintain growth above the industry average due to established brand recognition and proactive channel and product strategies [1]. Financial Performance Summary - For Q2 2024, the company reported revenue of 694 million yuan, a year-on-year decrease of 2.53%, and a net profit of 96 million yuan, a year-on-year decrease of 14.16% [1]. - The gross profit margin for Q2 was 35.2%, down 2.3 percentage points year-on-year, while the net profit margin was 13.8%, down 1.9 percentage points year-on-year [1]. - The company adjusted its EPS forecasts for 2024-2026 to 0.49, 0.54, and 0.63 yuan respectively, reflecting a downward revision from previous estimates [1][7]. Business Segment Analysis - The report indicates that the soy sauce and vinegar segments experienced revenue declines of 3.1% and 10.2% year-on-year respectively in Q2 [1]. - The company has increased its number of distributors to 3,560, but the performance of these distributors has been mixed, with a year-on-year decline of 4.8% in distributor channels [1]. - Online sales channels showed positive growth, with direct sales increasing by 2.9% year-on-year [1]. Market Outlook - The industry is currently in a downturn, but the company is expected to recover growth in Q4 2024 as the base effect diminishes [1]. - The report emphasizes the company's ongoing efforts to enhance brand recognition and product offerings, which are anticipated to support future growth despite current challenges [1].