Zhongjing Food(300908) 华鑫证券·2024-08-02 02:00Investment Rating - The report maintains a "Buy" investment rating for the company [1][3]. Core Insights - The company continues to experience growth in its core products, particularly in the e-commerce channel, with a total revenue of 538 million yuan in H1 2024, representing a 17% year-on-year increase [1]. - The gross profit margin improved by 3 percentage points to 43.76% in H1 2024, driven by the rapid growth of high-margin products like Shanghai scallion oil [1]. - The company is focusing on optimizing its product structure and expanding its direct sales channels, aiming for a sales target of 200 million yuan for Shanghai scallion oil in 2024 [1][2]. Summary by Sections Financial Performance - In H1 2024, the company reported total revenue of 538 million yuan, with a net profit of 100 million yuan, reflecting a 12% increase year-on-year [1]. - The company’s sales expenses increased by 3 percentage points to 16.05%, while management expenses decreased by 0.2 percentage points to 4.43% [1]. - The net profit margin decreased by 1 percentage point to 18.64% due to reduced government subsidies and investment income [1]. Product Performance - Revenue from mushroom sauce and seasoning products reached 317 million yuan and 215 million yuan, respectively, with year-on-year growth of 18% and 14% [1]. - The company is actively reducing inventory in offline channels while enhancing online marketing efforts, particularly through platforms like Douyin [1][2]. E-commerce Development - The e-commerce channel achieved sales of 119 million yuan in H1 2024, marking an 88% increase year-on-year [2]. - The company is expanding its direct-to-consumer (DTC) model and increasing its presence on various e-commerce platforms [2]. Earnings Forecast - The company is projected to maintain steady growth, with expected EPS of 1.58, 1.94, and 2.29 yuan for 2024, 2025, and 2026, respectively [3]. - The current stock price corresponds to a PE ratio of 17, 14, and 12 for the respective years [3].