Investment Rating - The investment rating for the company is "Hold" [1] Core Views - The company reported a revenue of 1 billion yuan in the first half of 2024, a year-on-year decrease of 11.8%, and a net profit attributable to shareholders of 94 million yuan, down 24.2% year-on-year. In Q2 2024, revenue was 540 million yuan, an increase of 3.4% year-on-year, with a net profit of 39 million yuan, down 24.1% year-on-year [1] - The main business of vinegar showed signs of recovery in Q2, while the low base of cooking wine led to high growth. For H1 2024, revenue from vinegar, wine, and sauce products was 680 million, 160 million, and 80 million yuan, respectively, with year-on-year changes of -7.1%, +3.5%, and -24.2%. In Q2 2024, the growth rates for vinegar, wine, and sauce were +6.8%, +92.7%, and +12.1% respectively [1] - The company is undergoing a reform period, focusing on optimizing organizational structure and accelerating the implementation of a performance appraisal system. A restricted stock incentive plan has been launched in 2024 to enhance employee motivation [2] Summary by Sections Financial Performance - In H1 2024, the company's gross margin was 36.6%, up 0.8 percentage points year-on-year, while Q2 gross margin was 32.5%, down 4 percentage points year-on-year. The decline in profitability is attributed to changes in product mix, with lower-margin products like wine and sauce increasing in proportion [1] - The company expects EPS for 2024, 2025, and 2026 to be 0.14 yuan, 0.16 yuan, and 0.17 yuan, respectively, corresponding to dynamic PE ratios of 50x, 46x, and 43x [2] Market Strategy - The company aims to focus on the "big single product" strategy, promoting simultaneous development of vinegar, wine, and sauce categories to enhance brand strength in key markets [2] - There is an emphasis on expanding distribution channels, particularly in the restaurant and e-commerce sectors, to improve market competitiveness [2] Regional Performance - In Q2 2024, revenue growth varied by region, with East China remaining stable, while Central and South China experienced faster growth rates of +12.5% and +13.2% year-on-year, respectively [1]
恒顺醋业:2024半年报点评:Q2主业增速回暖,期待后续改革成效