Ligao Foods (300973) China Post Securities·2024-08-31 13:40Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company achieved total revenue of 1.781 billion yuan in the first half of 2024, representing an 8.88% year-on-year increase, with net profit attributable to shareholders rising by 25.03% to 135 million yuan [3][4] - The growth in revenue is primarily driven by the strong performance of cream products, with sales of whipped cream exceeding 200 million yuan in the first half of the year [3][4] - The company is expected to launch new cream products in September, which may further enhance revenue growth [3] Financial Performance - The company's gross margin for the first half of 2024 was 32.6%, a slight decrease of 0.29 percentage points year-on-year, while the net profit margin was 7.59%, an increase of 0.98 percentage points [4] - The company forecasts revenue for 2024-2026 to be 3.835 billion, 4.298 billion, and 4.753 billion yuan respectively, with year-on-year growth rates of 9.61%, 12.05%, and 10.6% [6] - The projected net profit for the same period is 278 million, 351 million, and 437 million yuan, reflecting significant growth of 280.64% in 2024 [6][7] Market Position and Strategy - The company is focusing on product innovation, channel expansion, and cost control to maintain its competitive edge in the market [4][5] - The strategy includes reducing SKU numbers to simplify supply chain management and improve operational efficiency [4] - The company is also prioritizing resources towards multi-line agents in its distribution network [5]