YanKershop(002847)2024-10-22 13:03Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 70.80, reflecting a 30x PE valuation for 2024E [4][11]. Core Insights - The company reported a revenue of RMB 2.46 billion for H1 2024, representing a year-over-year growth of 29.84%, and a net profit of RMB 319 million, also up by 30.00% year-over-year [8][9]. - The company's strategy has shifted to focus on "channel as king, product leading, system escort," enhancing its all-channel capabilities and product offerings [9][10]. - The company has established a multi-category snack product system, focusing on seven core categories, which have shown rapid growth [10]. Financial Performance - In H1 2024, the gross profit margin decreased by 2.81 percentage points to 32.53%, while gross profit increased by 19.50% to RMB 800 million [8][9]. - The company’s sales expense ratio increased by 0.71 percentage points, while the management expense ratio rose by 0.27 percentage points, leading to a slight increase in the overall expense ratio [8][9]. - For Q2 2024, revenue was RMB 1.24 billion, a 23.44% increase year-over-year, with a net profit growth of 19.11% [9][10]. Revenue and Profit Forecast - The projected revenues for 2024, 2025, and 2026 are RMB 5.19 billion, RMB 6.51 billion, and RMB 8.11 billion, respectively, with corresponding net profits of RMB 649 million, RMB 828 million, and RMB 1.04 billion [4][11]. - The earnings per share (EPS) are expected to be RMB 2.36, RMB 3.02, and RMB 3.80 for the years 2024, 2025, and 2026, respectively [4][11]. Channel Strategy - The company is enhancing its all-channel coverage, focusing on e-commerce, snack wholesale, and campus stores, which has led to increased brand influence [10][11]. - In H1 2024, the distribution of sales channels was 72.00% through distributors, 23.59% through e-commerce, and 4.41% through direct supermarkets [10].