QIANHE(SH:603027) EBSCN·2024-09-02 05:59Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a challenging performance in Q2 2024, with revenue and net profit showing a decline compared to the previous year. The company is expected to improve in the second half of the year due to strategic adjustments [1] - The company achieved revenue and net profit of 1.589 billion and 251 million yuan in H1 2024, representing a year-on-year growth of 3.8% and a decline of 2.4%, respectively. In Q2 2024, revenue and net profit were 694 million and 96 million yuan, reflecting a year-on-year decrease of 2.5% and 14.2% [1] - The company is focusing on enhancing its distribution channels and has seen rapid revenue growth in the northern region, despite overall weak demand and high base effects from the previous year [1] Summary by Sections Financial Performance - In H1 2024, the company's soy sauce and vinegar segments generated revenues of 1.000 billion and 202 million yuan, with year-on-year growth of 3.5% and a decline of 8.0%, respectively. In Q2 2024, these segments reported revenues of 433 million and 89 million yuan, with year-on-year changes of -3.1% and -10.2% [1] - The company’s gross margin in H1 2024 was 35.6%, down 2.7 percentage points year-on-year, primarily due to intensified industry competition and increased promotional activities [1] - The net profit margin for H1 2024 was 15.8%, a decrease of 0.99 percentage points year-on-year [1] Market and Channel Development - The company has strengthened its support for specialized channels and enhanced its e-commerce operations, leading to a year-on-year increase in direct sales revenue [1] - The total number of distributors at the end of Q2 2024 was 3,560, an increase of 310 from the end of the previous year, with significant growth in the northern region [1] Future Outlook - The company is adjusting its strategies to improve market performance, including product upgrades and refined channel management. The long-term potential of the zero-additive market remains promising [1][2] - The forecast for net profit for 2024-2026 has been revised down to 567 million, 651 million, and 735 million yuan, reflecting a more competitive environment and weak consumer demand [2][3]