Shanghai Jahwa(600315) Changjiang Securities·2024-09-02 10:11Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Views - The company reported a revenue of 3.321 billion yuan for H1 2024, a year-on-year decrease of 8.51%, and a net profit attributable to shareholders of 238 million yuan, down 20.93% year-on-year [4][5]. - The decline in revenue is primarily attributed to growth pressures in overseas markets due to declining birth rates and challenges in the domestic beauty product category [5]. - The company has implemented a threefold transformation strategy focusing on organizational structure, brand strategy, and channel strategy to enhance operational efficiency and decision-making [5][6]. Financial Performance Summary - For H1 2024, the company achieved a gross margin of 61.13%, an increase of 0.88 percentage points year-on-year, driven by lower procurement costs for raw materials and packaging [5]. - Sales expenses amounted to 1.442 billion yuan, a decrease of 8.74% year-on-year, aligning with the revenue decline [5]. - The company’s inventory at the end of H1 2024 was 727 million yuan, with inventory turnover days decreasing by 26 days year-on-year [5]. Future Outlook - The company expects to see gradual improvements from its ongoing reforms, with projected EPS of 0.68, 0.74, and 0.84 yuan for 2024, 2025, and 2026 respectively [6][11]. - The multi-brand, multi-category, and multi-price structure of the company is believed to provide operational resilience in the current market environment [6].