Sanquan Food (002216) Southwest Securities·2024-09-02 05:56Investment Rating - The investment rating for the company is "Hold" [1] Core Views - The company's short-term performance is under pressure, with expectations for future adjustments [1] - The company reported a revenue of 3.67 billion yuan for the first half of 2024, a year-on-year decrease of 4.9%, and a net profit attributable to shareholders of 330 million yuan, down 23.8% year-on-year [1][2] - The decline in revenue is attributed to weak consumer demand in the frozen food sector, while the catering market showed stable growth [1][2] Summary by Relevant Sections Financial Performance - In H1 2024, the company achieved a revenue of 3.67 billion yuan, down 4.9% year-on-year, and a net profit of 330 million yuan, down 23.8% year-on-year [1] - The revenue for Q2 2024 was 1.41 billion yuan, a decrease of 4.7% year-on-year, with a net profit of 103 million yuan, down 34.6% year-on-year [1] - The gross profit margin for H1 2024 was 25.9%, down 1.7 percentage points year-on-year [2] Product and Market Analysis - Revenue from frozen rice and noodle products in H1 2024 was 3.14 billion yuan, down 5.8% year-on-year, with traditional rice and noodle products generating 2.06 billion yuan, down 7.8% [1] - The catering market revenue increased by 8.1% year-on-year to 680 million yuan, driven by new product launches targeting chain restaurants [1][2] Cost and Expense Management - The sales expense ratio increased by 0.9 percentage points year-on-year to 12.6% in H1 2024, reflecting increased investment in channel and brand promotion [2] - The net profit margin for H1 2024 was 9.1%, down 0.2 percentage points year-on-year [2] Future Outlook - The company plans to enhance profit contribution from traditional rice and noodle products while increasing the introduction of healthier and personalized new products [2] - There is a focus on expanding the hot pot ingredient segment and increasing resource allocation for hot pot meat products [2] - The company aims to improve its direct sales and distribution systems while accelerating online channel development [2] Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 0.74 yuan, 0.78 yuan, and 0.83 yuan respectively, with corresponding dynamic PE ratios of 14x, 13x, and 12x [2]