Shanghai Bolex Food Technology (SH:603170) Huaxin Securities·2024-09-09 03:09Investment Rating - The report maintains a "Buy" investment rating for the company [1][2]. Core Insights - The company has shown steady revenue growth, with a 13% year-on-year increase in H1 2024 revenue, reaching 1.273 billion yuan. However, profit margins are under pressure due to structural adjustments, leading to a 35% decrease in net profit [1][2]. - The B-end continues to contribute significantly to revenue growth, with the company expanding its customer base and product lines to enhance its competitive edge in the compound seasoning market [1][2]. - The company is expected to see profit margin recovery in the second half of the year as new product launches accelerate [1]. Revenue and Profit Forecast - The company’s revenue is projected to grow from 2.369 billion yuan in 2023 to 3.131 billion yuan by 2026, with growth rates of 16.3%, 10.5%, 9.7%, and 9.0% respectively [4]. - The net profit is expected to decline from 301 million yuan in 2023 to 239 million yuan in 2024, before recovering to 337 million yuan by 2026 [4]. - The diluted earnings per share (EPS) are forecasted to be 0.60 yuan in 2024, 0.73 yuan in 2025, and 0.84 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 19, 16, and 14 times [2][4]. Segment Performance - In Q2 2024, the company reported revenue of 649 million yuan, a 10% increase year-on-year, with a notable contribution from the B-end channel [1]. - The compound seasoning segment generated 301 million yuan in Q2 2024, reflecting a 10% increase, while the light cooking solutions segment saw a 12% increase in revenue [1]. - Direct sales channel revenue reached 521 million yuan in Q2 2024, up 11% year-on-year, indicating strong performance in the B-end market [1]. Financial Metrics - The company’s gross margin decreased by 2 percentage points to 30.6% in Q2 2024, primarily due to changes in channel and product structure [1]. - The net profit margin for Q2 2024 was reported at 8.66%, down 7 percentage points from the previous year [1]. - The company plans to continue expanding its C-end product price range and consumption scenarios to ensure stable profitability [1].