Sichuan Teway Food (SH:603317) Huachuang Securities·2024-09-02 00:03Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 12 CNY, while the current price is 10.17 CNY [1]. Core Views - The company reported a revenue of 1.47 billion CNY for the first half of 2024, reflecting a year-on-year increase of 3.0%, and a net profit attributable to shareholders of 250 million CNY, up 18.8% year-on-year [1]. - In Q2 2024, the company experienced a revenue decline of 6.8% year-on-year, with net profit down 10.9% year-on-year, indicating pressure on revenue due to decreased demand and increased competition [2]. - The online sales channel saw a significant increase of 57.4% year-on-year, while offline sales declined by double digits [2]. - The gross profit margin improved to 33.3% in Q2 2024, up 2.2 percentage points year-on-year, attributed to lower raw material prices and enhanced production efficiency [2]. - The company is expected to face continued revenue pressure in the second half of the year, but profit levels are anticipated to remain strong [2]. Financial Summary - Total revenue for 2023 is projected at 3.149 billion CNY, with a growth rate of 17.0%. For 2024, revenue is expected to reach 3.263 billion CNY, reflecting a growth rate of 3.6% [3]. - The net profit attributable to shareholders is forecasted to be 457 million CNY for 2023, increasing to 506 million CNY in 2024, with a growth rate of 10.8% [3]. - Earnings per share (EPS) is estimated to be 0.43 CNY for 2023, rising to 0.48 CNY in 2024 [3]. Market Performance - The company’s stock performance over the past 12 months shows a decline of 25%, compared to the CSI 300 index [5]. Financial Indicators - The company’s total assets are projected to be 5.274 billion CNY in 2023, with a debt-to-asset ratio of 16.22% [4]. - The projected return on equity (ROE) is expected to be 10.6% for 2023, increasing to 11.5% in 2024 [7].