Three Squirrels(300783) Huaan Securities·2024-08-31 03:06Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant growth in online sales, with a 75.39% year-on-year increase in revenue for the first half of 2024, driven by strong performance on platforms like Douyin [1] - The company's "D+N" strategy is effectively enhancing online channel growth and overall operational efficiency [1] - Profitability is improving due to supply chain enhancements and management efficiency, with a gross margin increase of 3.24 percentage points in Q2 2024 [1] Financial Performance Summary - Q2 2024 revenue reached 1.429 billion yuan, up 43.93% year-on-year, while net profit attributable to shareholders was -0.19 billion yuan, an increase of 51.21% [1] - For the first half of 2024, revenue was 5.075 billion yuan, up 75.39%, with a net profit of 0.29 billion yuan, reflecting an 88.57% increase [1] - The company expects to achieve a total revenue of 10.407 billion yuan in 2024, with a year-on-year growth of 46.3% [2][3] Profitability and Efficiency - The gross margin for Q2 2024 improved to 21.90%, primarily due to direct sourcing of nuts and streamlined production processes [1] - The net profit margin for Q2 2024 improved to -1.30%, indicating a reduction in losses [1] - The company is focusing on enhancing its supply chain efficiency and management effectiveness to drive profitability [1] Future Outlook - The company is expected to continue its growth trajectory, with projected revenues of 13.891 billion yuan and 17.745 billion yuan for 2025 and 2026, respectively [2][3] - The company plans to accelerate its offline distribution and continue expanding its online presence despite potential challenges from increased competition [1]