YANGYUAN(SH:603156) Great Wall Securities·2024-09-02 06:46Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% relative to the industry index over the next six months [12]. Core Views - The company experienced weak demand in Q2 2024, with revenue declining by 19.1% year-on-year, attributed to seasonal factors and market consumption trends. However, the company has adjusted its marketing strategies to optimize product offerings and enhance promotional activities [2][3]. - The gross margin improved to 46.3% in Q2 2024, up by 6.4 percentage points year-on-year, mainly due to a decrease in raw material costs. However, the overall expense ratio increased due to reduced scale effects from declining revenue [2][3]. - The company is a leader in the walnut milk industry, with strong brand recognition and a well-established distribution network. It is exploring opportunities in the plant-based protein beverage sector and functional drinks, aiming to broaden its product range [2][3]. Financial Summary - For H1 2024, the company reported revenue of 2.94 billion yuan, a decrease of 2.0% year-on-year, and a net profit of 1.03 billion yuan, an increase of 13.0% year-on-year. The Q2 2024 revenue was 630 million yuan, down 19.1% year-on-year, with a net profit of 150 million yuan, down 15.7% year-on-year [1][2]. - The company forecasts EPS for 2024, 2025, and 2026 to be 1.28 yuan, 1.41 yuan, and 1.53 yuan respectively, with corresponding P/E ratios of 14, 13, and 12 times [2][3].