Hiroad(300915)2024-09-02 05:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next 6 months [4][14]. Core Insights - The company reported a revenue of 518 million yuan for the first half of 2024, representing a year-on-year increase of 9.45%. The net profit attributable to shareholders was 69 million yuan, up 42.94% year-on-year [1]. - The main product categories, including cream, chocolate, and flavoring, showed varied growth, with cream continuing to be the leading product, accounting for 92.11% of revenue [1]. - The company is focusing on new product development, capacity expansion, and overseas market penetration to support its growth trajectory [1]. Financial Performance Summary - For the first half of 2024, the company achieved a gross margin of 37.71%, an increase of 3.20 percentage points year-on-year. The net profit margin was 13.37%, up 3.13 percentage points year-on-year [1]. - The company’s revenue is projected to grow significantly, with estimates of 1.146 billion yuan for 2024, 1.483 billion yuan for 2025, and 1.907 billion yuan for 2026, reflecting growth rates of 20%, 29%, and 29% respectively [2][12]. - The earnings per share (EPS) are expected to rise from 1.57 yuan in 2024 to 2.62 yuan in 2026 [2][12]. Product and Market Development - The company is actively developing differentiated new products, including cream and plant-based options, to cater to the food service sector [1]. - The new production capacity from the Guangdong factory and the upcoming line in India are expected to enhance market coverage and alleviate local production constraints [1].