GUOLIAN AQUATIC(SZ:300094) Huaxin Securities·2024-09-09 03:07Investment Rating - The report maintains a "Buy" investment rating for the company [1][2]. Core Views - The company has turned a profit in the first half of 2024, with a net profit of 0.18 billion yuan compared to a loss of 1.86 billion yuan in the same period of 2023. Revenue for H1 2024 was 2.022 billion yuan, down 25% year-on-year [1]. - The gross margin improved by 3 percentage points to 13.60% in H1 2024, attributed to supply chain optimization and expansion into high-value products. The net profit margin increased by 7 percentage points to 0.65% [1]. - The company is focusing on the recovery of the aquatic product market and optimizing its product structure, which is expected to enhance profitability [1]. Summary by Sections Financial Performance - H1 2024 revenue was 2.022 billion yuan, a decrease of 25% year-on-year. The net profit was 0.18 billion yuan, a significant recovery from a loss of 1.86 billion yuan in H1 2023. The company achieved a net profit of 0.02 billion yuan after excluding non-recurring items [1][4]. - The company’s revenue for Q2 2024 was 0.979 billion yuan, with a net profit of 0.14 billion yuan, compared to a loss of 1.97 billion yuan in Q2 2023 [1]. Product and Market Analysis - The aquatic food segment generated 1.942 billion yuan in revenue in H1 2024, down 25% year-on-year, but the gross margin increased by 3 percentage points to 14.16%. The pre-made dishes segment contributed 0.605 billion yuan, a decrease of 10% [1]. - Domestic revenue fell by 34% to 0.895 billion yuan, while international revenue decreased by 16% to 1.127 billion yuan. The company is reforming its U.S. operations and expanding its international market presence, particularly in Canada and Latin America [1]. Earnings Forecast - The earnings per share (EPS) for 2024-2026 are adjusted to 0.03, 0.04, and 0.08 yuan, respectively. The corresponding price-to-earnings (PE) ratios are projected to be 109, 66, and 35 times [2][4]. - The company expects a return on equity (ROE) of 1.1% in 2024, improving to 3.2% by 2026 [4].