Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a 11.9% year-on-year increase in main business revenue to 2.927 billion yuan for the first half of 2024, while net profit attributable to shareholders decreased by 13.8% to 308 million yuan [3] - The ready-to-eat food segment has shown signs of recovery, with a 22.2% year-on-year increase in revenue, driven by a 39.9% increase in volume [3] - The company has strengthened online marketing efforts to attract younger consumers, resulting in a 2.87 percentage point increase in sales expense ratio to 12.0% [4] - The gross profit margin decreased by 0.54 percentage points to 30.0% due to price adjustments in hot pot base products [3][4] Summary by Sections Financial Performance - For the first half of 2024, the company achieved a main business revenue of 2.927 billion yuan, with a year-on-year growth of 11.9% [3] - The net profit attributable to shareholders was 308 million yuan, reflecting a decrease of 13.8% year-on-year [3] - The gross profit margin for the first half of 2024 was 30.0%, down from the previous year [3] Product Performance - Hot pot seasoning revenue increased by 5.6% year-on-year, with volume growth of 21.4% and price decline of 12.9% [3] - Compound seasoning revenue saw a significant increase of 24.4% year-on-year, driven by new product launches [3] - The ready-to-eat food segment's revenue increased by 22.2% year-on-year, with a notable 167.7% increase in revenue from related parties [3] Market Strategy - The company has enhanced its online marketing strategies, including collaborations and promotional events, to engage younger consumers [4] - The sales expense ratio increased due to higher online marketing and transportation costs [4] Earnings Forecast - The company is expected to achieve EPS of 0.83, 0.93, and 1.03 yuan per share for 2024, 2025, and 2026 respectively [5] - Based on comparable company valuations, a P/E ratio of 16-20 times is projected for 2024, corresponding to a reasonable value range of 13.26-16.58 yuan per share [4][5]
颐海国际：B端定调表现亮眼，盈利能力有所承压