BRIGHT DAIRY(SH:600597)2024-09-04 01:39Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [3]. Core Views - The company reported a decline in revenue and profit for the first half of 2024, with total revenue of 12.71 billion yuan, down 10.08% year-on-year, and a net profit of 280 million yuan, down 17.03% year-on-year [3][4]. - The report highlights that the company's liquid milk business is under pressure due to weak demand and increased competition, leading to a decrease in revenue and profit margins [3][4]. - Despite short-term fluctuations in performance, the company is expected to benefit from a recovery in demand and improvements in the supply-demand balance in the dairy industry [3][4]. Financial Summary - For the first half of 2024, the company achieved a gross margin of 19.83%, a slight decrease of 0.29 percentage points year-on-year [3]. - The company's net profit margin for the first half of 2024 was 2.2%, down 0.18 percentage points year-on-year, while the non-recurring net profit margin improved to 2.74%, up 0.5 percentage points year-on-year [3][4]. - The forecast for net profit for 2024, 2025, and 2026 is set at 480 million, 536 million, and 579 million yuan respectively, reflecting a significant decline in 2024 but a recovery in subsequent years [3][4].