Ligao Foods (SZ:300973) Changjiang Securities·2024-09-02 08:44Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a total revenue of 1.781 billion yuan for H1 2024, representing an increase of 8.88% year-on-year. The net profit attributable to the parent company was 135 million yuan, up 25.03%, while the net profit excluding non-recurring items was 125 million yuan, an increase of 20.66% [4][5]. - The growth in revenue was primarily driven by cream products, with sales of cream products increasing by over 80% year-on-year. The second UHT cream production line at the production base in Foshan Sanshui has been nearly completed [4][5]. - The gross profit margin slightly decreased by 0.29 percentage points to 32.6%, with sales expense ratio increasing due to higher transportation and promotional costs [4][5]. Summary by Sections Financial Performance - For H1 2024, total revenue was 1.781 billion yuan (+8.88% YoY), net profit was 135 million yuan (+25.03%), and net profit excluding non-recurring items was 125 million yuan (+20.66%). In Q2 2024, total revenue was 865 million yuan (+2.80%), net profit was 58.5 million yuan (+0.30%), and net profit excluding non-recurring items was 57.2 million yuan (+3.50%) [4][5]. Product and Channel Analysis - Frozen baked goods accounted for approximately 60% of revenue, remaining stable year-on-year. The revenue from baking ingredients increased by about 25%, with cream products contributing significantly to revenue growth [4][5]. - Revenue from distribution channels grew nearly 15%, while supermarket channel revenue saw a slight decline due to periodic adjustments in product listings. Innovative channels like catering and new retail showed a combined growth rate of nearly 25% [4][5]. Strategic Initiatives - The company is focused on becoming a "global integrated service provider for baking," enhancing its product, channel, and supply chain advantages. Key initiatives include technological upgrades and the establishment of a procurement committee to optimize purchasing management [5]. - The company expects net profits for 2024-2026 to be 250 million, 337 million, and 389 million yuan, respectively, with corresponding EPS of 1.48, 1.99, and 2.30 yuan, maintaining a PE ratio of 16, 12, and 10 times [5].