Ligao Foods (300973) Soochow Securities·2024-09-02 07:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 1.781 billion yuan in H1 2024, representing a year-on-year increase of 8.88%, and a net profit attributable to shareholders of 135 million yuan, up 25.03% year-on-year [2] - The performance of cream products continues to be strong, while frozen baking products face growth pressure. Revenue from various product segments in H1 2024 includes: frozen baked goods 1.061 billion yuan (-0.15%), cream 433 million yuan (+82.74%), fruit products 77 million yuan (-14.06%), sauces 104 million yuan (-2.88%), other baking raw materials 92 million yuan (-28.86%), and warehousing and transportation services 11 million yuan (+33.33%) [2] - The company's net profit margin decreased due to scale effects and a decline in government subsidies, with a net profit margin of 6.76% in Q2 2024, down 0.17 percentage points year-on-year and 1.62 percentage points quarter-on-quarter [2][3] - New production lines for oil refining and UHT cream are nearing completion, which will further strengthen the company's competitive advantage [3] - The company aims to become a global integrated service provider for baking, with a clear long-term strategy focusing on both channels and products [3] Financial Summary - Revenue forecasts for 2024-2026 are 3.864 billion yuan, 4.356 billion yuan, and 4.857 billion yuan, respectively, with year-on-year growth rates of 10%, 13%, and 11% [3] - Net profit attributable to shareholders is projected to be 264.53 million yuan, 323.85 million yuan, and 386.23 million yuan for 2024-2026, with growth rates of 262%, 22%, and 19% respectively [3] - The company's P/E ratios are expected to be 15.63, 12.76, and 10.70 for 2024-2026 [1][3]