Juewei Food (SH:603517) Xinda Securities·2024-09-02 12:10Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 3.34 billion yuan and a net profit attributable to shareholders of 300 million yuan for the first half of 2024, showing a year-on-year decline of 9.7% in revenue but an increase of 22.2% in net profit [1] - The company is facing short-term pressure on single-store performance, with a net closure of 981 stores in the first half of 2024, leading to an average revenue per store of 169,000 yuan, which is approximately an 11% decline year-on-year [1] - The company is actively adjusting its strategic decisions to focus on franchisee profitability and enhance brand building and online consumption scenarios [1] - The gross margin for Q2 2024 improved to 30.6%, up 8.2 percentage points year-on-year, primarily due to low raw material prices [1] - The company announced a mid-term dividend plan, distributing a cash dividend of 0.30 yuan per share, resulting in a semi-annual dividend yield of 2.34% [1] Financial Summary - For 2024, the company is expected to achieve a revenue of 6.58 billion yuan, a decrease of 9.4% year-on-year, with net profit projected at 673 million yuan, reflecting a significant increase of 95.5% year-on-year [2] - The gross margin is expected to rise to 30.9% in 2024, with a return on equity (ROE) projected at 9.6% [2] - The earnings per share (EPS) for 2024 is forecasted to be 1.09 yuan, with a price-to-earnings (P/E) ratio of 11.53 [2][3]