HAI TIAN(603288) 太平洋·2024-09-04 01:01Investment Rating - The report assigns a "Buy" rating to the company with a target price of 41.8, up from the last closing price of 37.00 [1]. Core Insights - The company demonstrated resilient growth in Q2 2024, with revenue reaching 64.62 billion yuan, a year-on-year increase of 7.98%, and a net profit of 15.34 billion yuan, up 11.12% year-on-year [2][4]. - The company has effectively adjusted its channels, leading to improved revenue performance despite industry challenges [2][4]. - The gross margin increased to 36.33% in Q2, driven by lower raw material costs, contributing to a stable rise in profitability [2][4]. Summary by Sections Financial Performance - For H1 2024, the company reported revenue of 141.56 billion yuan, a 9.18% increase year-on-year, and a net profit of 34.53 billion yuan, up 11.52% year-on-year [2][4]. - Q2 revenue breakdown includes soy sauce at 31.8 billion yuan (+3.0%), seasoning sauce at 6.5 billion yuan (+11.4%), oyster sauce at 10.4 billion yuan (+1.2%), and other products at 10.8 billion yuan (+22.5%) [2][4]. - The company’s gross margin for H1 2024 was 36.86%, reflecting a 0.95 percentage point increase year-on-year [2][4]. Market Strategy - The company is focusing on channel diversification and product innovation to adapt to market trends, with a new employee stock ownership plan aimed at stabilizing growth [2][4]. - The number of distributors decreased by 1.21% year-on-year to 6,674, but there was a net increase of 168 distributors since the beginning of the year [2][4]. Future Projections - Revenue forecasts for 2024-2026 are 270.2 billion yuan, 297.8 billion yuan, and 329.0 billion yuan, with expected year-on-year growth rates of 10.0%, 10.2%, and 10.5% respectively [2][4]. - Projected net profits for the same period are 61.2 billion yuan, 66.7 billion yuan, and 72.9 billion yuan, with growth rates of 8.7%, 9.0%, and 9.4% respectively [2][4].