ZHONGYIN BABI FOOD CO.(605338) 东吴证券·2024-09-02 09:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company reported a revenue of 764 million yuan for H1 2024, a year-on-year increase of 3.56%, and a net profit attributable to shareholders of 111 million yuan, up 36.04% year-on-year [2] - The company is focusing on improving its single-store model amidst a decline in customer traffic, with strategies including optimizing store signage, menus, and layouts, as well as targeted support for stores [2] - The company has established five factories across China to support its national expansion, with ongoing projects aimed at enhancing production capacity [2] Financial Performance Summary - For 2024, the company expects total revenue of 1.699 billion yuan, a 4.20% year-on-year increase, and a net profit of 227.53 million yuan, reflecting a 6.46% increase [1][3] - The company's gross profit margin for Q2 2024 was 26.38%, a slight decrease of 0.32 percentage points year-on-year, primarily due to rising pork prices [2] - The company’s net profit margin for Q2 2024 was 17.54%, an increase of 7.74 percentage points year-on-year [2] Revenue and Profit Forecast - The revenue forecast for 2024-2026 is adjusted to 1.7 billion yuan, 1.85 billion yuan, and 1.99 billion yuan respectively, with corresponding net profits of 230 million yuan, 240 million yuan, and 260 million yuan [3] - The expected P/E ratios for 2024, 2025, and 2026 are 16x, 15x, and 14x respectively [3] Store Expansion and Business Model - As of Q2 2024, the company had 5,284 franchise stores, with a net increase of 190 stores since Q1 [2] - The company is experiencing a decline in average single-store revenue, prompting a focus on improving store performance and expanding dining options [2]