Joyoung(SZ:002242)2024-09-03 03:39Investment Rating - The report maintains an "Outperform" investment rating for Jiuyang Co., Ltd. [4][5] Core Views - Jiuyang's performance in H1 2024 was below expectations, with revenue of 4.387 billion yuan, a year-on-year increase of 2%, and a net profit attributable to shareholders of 175 million yuan, a year-on-year decrease of 29% [4][5] - Domestic sales outperformed the industry, while external sales were impacted by base effects. Domestic revenue reached 3.555 billion yuan, up 4.66% year-on-year, while external sales were 832 million yuan, down 9.69% year-on-year [4][5] - The company is expected to benefit from channel reforms and an increase in market share in core categories, despite a challenging industry environment [4][5] Summary by Sections Financial Performance - H1 2024 revenue was 4.387 billion yuan, with a net profit of 175 million yuan, reflecting a decline in profitability [4][5] - The company anticipates revenue growth in the coming years, with projections of 10.272 billion yuan in 2024, 11.283 billion yuan in 2025, and 12.185 billion yuan in 2026 [5][7] - The net profit forecast for 2024 is 414 million yuan, with expected growth rates of 6.4% in 2024, 17.1% in 2025, and 11.2% in 2026 [5][7] Market Position - Jiuyang's core product categories, such as food processors and nutrition pots, have shown growth despite a general decline in the kitchen appliance market [4][5] - The company has successfully increased its market share in domestic sales channels, with a focus on traditional sales channels and direct sales [4][5] Future Outlook - The report maintains profit forecasts for 2024-2026, with expected earnings per share of 0.54 yuan in 2024, 0.63 yuan in 2025, and 0.70 yuan in 2026 [5][7] - Long-term growth is anticipated from new product categories and improved supply chain efficiencies [5][7]