农夫山泉：脚踏实地，健康发展

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The report highlights that the company achieved a revenue of 22.173 billion yuan in the first half of 2024, representing a year-on-year increase of 8.4%, and a net profit attributable to shareholders of 6.24 billion yuan, also up by 8.0% [1][3] - The report emphasizes the company's strong growth potential and profitability in the beverage industry, driven by its dual-engine development strategy of water and beverages, and its commitment to innovation and health [3][4] Financial Performance Summary - The company's packaging water revenue faced a significant decline of 18.3% year-on-year in H1 2024, totaling 8.531 billion yuan, primarily due to negative impacts from online public opinion [2] - Tea beverage revenue surged by 59.5% year-on-year to 8.430 billion yuan in H1 2024, attributed to the health-conscious and low-sugar consumption trends [2] - Juice beverage revenue increased by 25.4% year-on-year to 2.114 billion yuan, benefiting from product upgrades and new flavor launches [2] - The overall gross margin for H1 2024 was 58.8%, a decrease of 1.4 percentage points year-on-year, influenced by promotional activities for new products [3] Earnings Forecast - The report projects the company's EPS for 2024, 2025, and 2026 to be 1.10 yuan, 1.24 yuan, and 1.38 yuan respectively, with corresponding P/E ratios of 24, 21, and 19 times based on the closing price of 28.4 HKD per share on August 30, 2024 [4]