Juewei Food (603517) 海通证券·2024-09-03 00:39Investment Rating - The investment rating for the company is "Outperform" and is maintained [2] Core Views - The company's 24Q2 non-GAAP net profit attributable to the parent company increased by 36.63% YoY [4] - The company achieved revenue of 3.34 billion yuan in 24H1, a YoY decrease of 9.73%, and net profit attributable to the parent company of 296 million yuan, a YoY increase of 22.2% [4] - The company plans to distribute an interim dividend of 0.30 yuan per share (tax included) [4] - The company's gross margin in 24H1 was 30.29%, a YoY increase of 6.98 percentage points, mainly due to a decrease in raw material costs [5] - The company's focus is on improving single-store revenue and ensuring the survival of franchisees, with the number of mainland stores decreasing by 7.38% YoY to 14,969 by the end of 24H1 [5] Financial Performance - 24Q2 revenue was 1.644 billion yuan, a YoY decrease of 12.35%, with net profit attributable to the parent company of 131 million yuan, a YoY increase of 25.08% [4] - 24Q2 non-GAAP net profit attributable to the parent company was 125 million yuan, a YoY increase of 36.63% [4] - 24Q2 operating cash flow was 331 million yuan, turning positive YoY [4] - 24Q2 gross margin was 30.55%, a YoY increase of 8.21 percentage points [5] - 24Q2 sales expense ratio/management expense ratio/financial expense ratio were 10%/7.7%/0.33%, with YoY changes of +2.62/+0.26/+0.24 percentage points respectively [5] - 24Q2 non-GAAP net profit margin was 7.62%, a YoY increase of 2.73 percentage points [5] Revenue Breakdown - 24Q2 revenue from fresh products, packaged products, franchisee management, and other businesses were 1.262 billion yuan (-15.16% YoY), 139 million yuan (+111.12% YoY), 18 million yuan (-27.06% YoY), and 192 million yuan (-26.21% YoY) respectively [5] - 24Q2 revenue by region: Southwest 201 million yuan (-1.6% YoY), Northwest 19 million yuan (-58.9% YoY), Central China 467 million yuan (-20.54% YoY), South China 358 million yuan (-10.12% YoY), East China 301 million yuan (-12.29% YoY), North China 241 million yuan (+7.44% YoY), and Singapore & Canada & Hong Kong & Macau markets 25 million yuan (-29.61% YoY) [5] Forecast and Valuation - The company's net profit attributable to the parent company is expected to be 674 million yuan, 789 million yuan, and 912 million yuan for 2024-2026 respectively [5] - The company is expected to gradually accelerate its development as consumption recovers, with a reasonable value per share range of 21.73-27.16 yuan based on 20-25x PE and 15-20x EV/EBITDA for 2024 [5] Financial Metrics - 24H1 operating cash flow was 719 million yuan, a YoY increase of 208.43% [4] - 24H1 sales expense ratio/management expense ratio/financial expense ratio were 8.93%/7.28%/0.41%, with YoY changes of +1.83/+0.17/+0.35 percentage points respectively [5] - 24H1 non-GAAP net profit margin was 8.42%, a YoY increase of 2.3 percentage points [5]