Shanghai Ziyan Foods (603057) 华鑫证券·2024-08-18 02:38Investment Rating - The report maintains a "Buy" investment rating for the company [2][4]. Core Insights - The company experienced a decline in total operating revenue by 4.59% year-on-year, amounting to 1.663 billion yuan, while achieving a net profit of 198 million yuan, reflecting a growth of 10.28% year-on-year [2][3]. - The decrease in raw material costs has positively impacted the company's profitability, with a gross margin increase of 3.66 percentage points to 24.79% [2][3]. - The company is expanding its store count, reaching 6,308 stores nationwide, with a focus on long-term strategic positioning despite external pressures [3][4]. Summary by Sections Financial Performance - For the first half of 2024, the company reported a net profit margin of 11.95%, an increase of 1.79 percentage points year-on-year, and a net profit of 198 million yuan [2][3]. - The second quarter of 2024 saw total operating revenue of 969 million yuan, a year-on-year decrease of 1.98%, but with a gross margin of 27.59%, up 4.59 percentage points [3]. Revenue Breakdown - Revenue from the distribution model accounted for approximately 85% of total revenue, while direct sales contributed about 2%, and other models made up 13% [2]. Profitability Forecast - The report slightly adjusts the earnings per share (EPS) forecast for 2024-2026 to 0.83, 0.93, and 1.04 yuan respectively, with corresponding price-to-earnings (PE) ratios of 17, 15, and 13 times [4].