Sichuan Teway Food (SH:603317) KAIYUAN SECURITIES·2024-09-02 12:00Investment Rating - The investment rating for the company is "Outperform" (Maintain) [1] Core Views - The company reported a revenue of 1.47 billion and a net profit of 250 million for H1 2024, showing a year-on-year increase of 3.0% and 18.8% respectively. However, Q2 2024 revenue and net profit were 610 million and 70 million, reflecting a year-on-year decline of 6.8% and 10.9% [3][4] - The report anticipates a recovery in revenue performance in H2 2024 due to the sales peak season, with a forecasted double-digit growth for the full year [6] Financial Performance Summary - For H1 2024, the company's revenue from hot pot condiments, Chinese cuisine condiments, and sausage products showed varied performance, with hot pot condiments declining by 10.2% and Chinese cuisine condiments increasing by 11.6% [4] - The gross margin for Q2 2024 was 33.3%, up by 2.2 percentage points year-on-year, primarily due to a decrease in raw material costs [5] - The company expects to optimize its product mix during the peak season, leading to a potential recovery in gross margin compared to Q2 2024 [6] Financial Forecast - The projected revenue for 2024 is 3.477 billion, with a year-on-year growth of 10.4%. The net profit is expected to reach 528 million, reflecting a growth of 15.5% [7] - The earnings per share (EPS) for 2024 is estimated at 0.50, with a P/E ratio of 20.5 times [7]