Zhejiang Yiming Food (SH:605179) Huaxin Securities·2024-09-09 03:06Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown steady revenue growth, with a 9% year-on-year increase in H1 2024, reaching 1.372 billion yuan, primarily driven by the expansion of its milk bar stores [1] - The net profit attributable to shareholders increased by 5% year-on-year to 26 million yuan, while the net profit excluding non-recurring items rose by 19% to 27 million yuan [1] - The company is focusing on a big product strategy and has successfully entered the Jiangxi market, with plans to expand into new cities in Anhui [1] Revenue and Profitability - The company's revenue for H1 2024 was 1.372 billion yuan, with a gross margin of 29.5%, down 2 percentage points year-on-year [1] - The second quarter of 2024 saw revenue of 729 million yuan, a 6% increase year-on-year, but net profit decreased by 22% to 16 million yuan [1] - The company’s operating expenses have been managed effectively, with sales and management expense ratios at 23.64% and 0.97%, respectively [1] Product and Channel Strategy - Revenue from different product categories in H1 2024 included 646 million yuan from dairy products, 469 million yuan from baked goods, and 105 million yuan from other foods, with growth rates of +6%, -2%, and +58%, respectively [1] - The company is enhancing its online sales channels, achieving a 64% year-on-year increase in online sales in Q2 2024, with a high new customer ratio of 73% in the O2O segment [1] Future Earnings Forecast - The company is expected to continue its revenue and profit growth, with projected EPS of 0.15, 0.20, and 0.27 yuan for 2024, 2025, and 2026, respectively [3][4] - The current stock price corresponds to PE ratios of 58, 43, and 32 for the years 2024, 2025, and 2026 [1]