2021.09.01
■ Hainan announced that sales in 1H21 grew by 6% yoy to Rmb12.3bn and net profit rose by 3% yoy to Rmb3.4bn, below our estimates, mainly due to high channel inventory, competition from smaller brands through the community group purchase channel, and raw material price increases.
■ Haitian started to cooperate with key group purchase platforms in 3Q21F; we expect it to take time for it to digest channel inventory and penetrate new channels in 2H21F.
■ We expect the Company’s sales to remain yoy flattish in 2H21F and net profit to decline by 6.9% yoy.
■ Downgrade to Hold with a lower DCF-based of TP of Rmb104.
