Guangzhou Restaurant(603043) 光大证券·2024-09-01 10:16Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Views - The company has shown significant improvement in its restaurant business, although profits are under short-term pressure due to various factors [1]. - The company achieved a revenue of 1.91 billion yuan in the first half of 2024, representing a year-on-year increase of 10.3%, while the net profit attributable to shareholders decreased by 27% to 60 million yuan [1]. - The report highlights the successful expansion of the company's restaurant business outside its home province, with notable growth in various product lines and channels [1]. Summary by Sections Financial Performance - In the first half of 2024, the company reported revenues of 1.91 billion yuan, with a net profit of 60 million yuan, down 27% year-on-year [1]. - The second quarter of 2024 saw revenues of 900 million yuan, also reflecting a 10.6% increase year-on-year, but the net profit turned negative at -10 million yuan [1]. - The gross margin for the first half of 2024 was 25.86%, down 3.22 percentage points year-on-year, primarily due to the increased proportion of lower-margin restaurant services [1]. Business Segments - The company’s mooncake series, frozen products, and other commercial and restaurant services generated revenues of 32 million, 540 million, 570 million, and 722 million yuan respectively in the first half of 2024, with growth rates of 7.14%, -0.51%, 18.12%, and 14.62% [1]. - The company expanded its direct sales and dealer channels, achieving revenues of 341 million and 801 million yuan, with year-on-year growth of 2.96% and 10.64% respectively [1]. Market Expansion - The company has successfully expanded its market presence outside Guangdong province, with revenue from Guangdong province increasing by 5.38%, while revenue from outside Guangdong increased by 16.09% [1]. - The company has opened new self-operated restaurants and acquired authorized restaurant outlets, contributing to the growth in restaurant revenue [1]. Profitability Forecast - The report adjusts the net profit forecasts for 2024-2026 to 551 million, 629 million, and 699 million yuan, reflecting downward revisions of 15%, 17%, and 18% respectively [1]. - The estimated earnings per share (EPS) for 2024-2026 are projected to be 0.97, 1.11, and 1.23 yuan, with corresponding price-to-earnings (P/E) ratios of 15x, 13x, and 12x [1].