NHD(SZ:002946) Changjiang Securities·2024-09-09 06:10Investment Rating - The investment rating for the company is "Buy" and is maintained [5][3]. Core Views - The company reported a total revenue of 5.364 billion yuan for H1 2024, reflecting a year-on-year increase of 1.25%. The net profit attributable to shareholders was 296 million yuan, up 25.26% year-on-year, while the net profit excluding non-recurring items reached 313 million yuan, marking a 36.39% increase [2][3]. - The liquid milk segment showed resilient growth, with revenue from liquid milk at 4.844 billion yuan, a year-on-year increase of 0.54%. The company is focusing on upgrading its product structure and expanding direct sales channels, which has led to a significant increase in market share for its high-end products [2][3]. - The company achieved a record high profit margin in Q2 2024, with a net profit margin of 7.51%, driven by cost reduction and efficiency improvements. The gross profit margin also increased to 29.09% [3][2]. - The company is expected to maintain positive revenue growth and accelerate profit improvement in 2024-2025, with projected net profits of 561 million yuan and 724 million yuan for 2024 and 2025, respectively [3][2]. Summary by Sections Financial Performance - For H1 2024, total revenue was 5.364 billion yuan, with a net profit of 296 million yuan and a net profit excluding non-recurring items of 313 million yuan. In Q2 2024, total revenue was 2.751 billion yuan, with a net profit of 207 million yuan [2][3]. - The company’s gross profit margin for H1 2024 was 29.23%, and the net profit margin improved to 5.53% [3][2]. Product and Market Strategy - The company is focusing on upgrading its product structure, with significant growth in high-end products, including a 30% increase in mid-to-high-end series and a 15% growth in its premium fresh milk [2][3]. - The company is expanding its direct sales channels, particularly in KA chains and schools, which has contributed to market share growth despite a challenging environment for dairy product demand [2][3]. Future Outlook - The company is expected to achieve net profits of 561 million yuan in 2024 and 724 million yuan in 2025, with corresponding EPS of 0.65 yuan and 0.84 yuan, and a PE valuation of 14 and 11 times, respectively [3][2].