Investment Rating - The report upgrades the investment rating to "Buy" with a target price of HKD 2.7, indicating a potential upside of 44% from the current stock price of HKD 1.87 [4][10]. Core Insights - The company has shown a recovery in its goat milk powder segment, with revenue reaching HKD 1.81 billion in the first half of 2024, representing a year-on-year growth of 20.2% [2][10]. - The overall revenue for the first half of 2024 was HKD 3.68 billion, a 4.8% increase, while net profit decreased by 15.3% to HKD 150 million [1][2]. - The company expects net profits for 2024, 2025, and 2026 to be HKD 270 million, HKD 310 million, and HKD 320 million respectively, with corresponding EPS of HKD 0.16, HKD 0.19, and HKD 0.19 [1][2]. Revenue Breakdown - Goat milk powder revenue in the domestic market was HKD 1.51 billion, up 15.7% year-on-year, while overseas revenue reached HKD 290 million, a significant increase of 50% [2][10]. - Cow milk powder revenue faced challenges, declining by 10.4% to HKD 1.13 billion due to intensified competition and regulatory changes [2][10]. Margin Analysis - The gross margin for the first half of 2024 improved to 43.4%, up 1.4 percentage points year-on-year, driven by reduced discounts and a higher proportion of high-margin products [2][10]. - Goat milk powder's gross margin increased by 4 percentage points to 54.8%, while cow milk powder's gross margin slightly decreased to 53.1% [2][10]. Strategic Developments - The company completed the acquisition of the remaining 50% stake in the Dutch goat cheese company Amalthea for EUR 18.4 million, enhancing its supply chain for core goat milk powder products [2][10]. - The nutrition products segment reported a slight decline in revenue to HKD 145 million, but the newly restructured division showed strong growth [2][10]. Financial Projections - The report forecasts a recovery in net profit growth rates, projecting a 61.5% increase in 2024 and a 15% increase in 2025 [17]. - The company’s financial metrics indicate a projected PE ratio of 11.4 for 2024, decreasing to 9.9 by 2025 [3][17].
澳优：羊奶粉增长，业绩拐点渐进