SHIYUE DAOTIAN (09676) reported revenue of 3.814 billion yuan in the first half of the year, leading to a model-driven valuation reassessment.

Income and profit both increasing, with multiple growth models continuously releasing, and a dividend yield exceeding 8%, the leading family food brand SHIYUE DAOTIAN (09676) showcases its strong performance again. On August 24, SHIYUE DAOTIAN released its financial report for the first half of 2026, achieving revenues of 3.814 billion yuan, a year-on-year increase of 24.5%, maintaining a double-digit growth trend; its profitability demonstrated resilience, with a gross profit of 696 million yuan, a year-on-year increase of 4.4%, and a profit of 157 million yuan, a year-on-year increase of 35.4%. The gross margin and profit margin for the period were 18.25% and 4.12%, respectively, while the adjusted net profit was approximately 209 million yuan, with an adjusted net profit margin of 5.5%. SHIYUE DAOTIAN employs a dual-wheel drive strategy of staple food + leisure food." In the first half of the year, the company actively adjusted its revenue structure across categories, creating a diversified growth curve, while continuing to deepen its omni-channel ecosystem. New channels are continuously expanding, resulting in high-quality growth. Cash flow significantly improved during the period; as of June 2026, the companys cash equivalents reached 1.022 billion yuan, an increase of 1.38 times compared to the end of 2025. In the first half of the year, the company actively repurchased shares to boost shareholder confidence, buying back a total of 11.4024 million shares, and on July 17, it paid a year-end dividend of 0.32 yuan per share for 2025, with a dividend yield exceeding 8%. Institutions have shown foresight, as the company's stock price has risen for four consecutive weeks, with an increase of over 15%. Steady performance growth, creating a diversified growth curve Reviewing SHIYUE DAOTIANs financial report for the first half of the year, the dual-wheel strategy of staple food + leisure food drives product structure adjustment, continuously stimulating performance growth with diverse revenue streams. The three main categories, "rice products," "grains, beans, and other products," and "dried goods and other products," generated revenues of 2.694 billion yuan, 369 million yuan, and 350 million yuan, respectively, with year-on-year growth rates of 30.4%, 34.7%, and 21.0%, and revenue shares of 70.6%, 9.7%, and 9.2%, respectively. Looking at the longer term, it is evident that from 2024 to the first half of 2026, these three main categories maintained a double-digit growth trend, which fully reflects the significant effectiveness of the staple food + leisure food strategic decision. Furthermore, the optimization of the company's revenue structure continues to enhance the resilience of profit growth. In the first half of the year, the companys gross profit increased by 4.4%, but the compound growth rate of gross profit from the first half of 2024 to 2026 is 25.2%, with a gross margin improving by 1.31 percentage points, remaining stable with growth. By category, the margins of the three core growth engines are steadily rising, with high-margin businesses contributing more. Compared to the same period last year, the gross margin for staple food rice remains stable at 16.6%, while the gross margins for beans and other products and dried goods and other products saw significant increases, rising by 6.5 percentage points to 25.7% and 2.4 percentage points to 9.9%, respectively, with the gross profit contribution from high-margin beans and other products increasing to 136.2 million yuan. Additionally, the gross margin for corn is 29.4%, with expectations for recovering corn prices from the bottom, to further optimize the product structure. SHIYUE DAOTIANs high-quality growth is reflected in both balanced revenue and profitability development, as well as improved operational efficiency and healthy cash flow. In the first half of the year, the companys inventory and receivables continued to improve, with significant increases in cash collection. Inventory stood at 1.363 billion yuan, decreasing by 724 million yuan compared to the end of 2025, while receivables decreased by 19 million yuan, resulting in cash equivalents significantly increasing to 1.022 billion yuan, accounting for 26.8% of revenues. Continuous release of multiple growth models suggests double lift in performance valuation SHIYUE DAOTIANs long-term growth roadmap is quite clear, focusing on product and channel aspects, creating a diversified growth model through effective multi-dimensional strategies. On the product side, the company deeply engages in key categories of rice and corn, continuously developing multiple single products that have achieved annual sales of over 100 million yuan, such as the Hanlu Qiuxiang Wuchang rice and long-grain fragrant rice, while continuously innovating products around light meals, health, and low-fat core scenario demands, such as introducing clean-label seven-color brown rice balls. The company continually enriches its category matrix, advancing the layout of grains, beans, and dried goods to complete the family food map. On the channel side, the company enhances its omni-channel ecosystem, deepening the "people, goods, and" reconstruction. By promoting a dual-driven approach of traffic + content, it upgrades its brand capabilities from product delivery to scenario-based life services, creating a value closed loop of fully integrated marketing. Online, it relies on a fully integrated multi-account matrix to continue delivering high-quality scenario-based content, while offline, it deeply binds diverse sports events to directly reach consumers. With collaborative efforts on both product and channel fronts, multiple growth curves have begun to take shape. In the first half of 2026, both core and non-core product categories achieved double-digit growth, with non-core categories (grains, beans, dried goods, and others) generating 719 million yuan, a year-on-year increase of 27.6%, and increasing their revenue share to 18.9%. On the channel side, online self-operated channels, modern supermarket channels, and distribution networks all experienced remarkable growth, increasing by 41.6%, 42.8%, and 50.3%, respectively, with the combined revenue share of the three high-growth channels rising to 50.17%. In fact, through the creation of diverse growth engines, SHIYUE DAOTIAN has completed a strategic positioning upgrade from a kitchen food company to an innovator in the family food industry, dispersing risks from single categories; and with the creation of diverse channel growth engines, the company reconfigures the people, goods, and, allowing both traffic and content to accurately reach users across all channels, continuously lowering customer acquisition costs, enhancing brand recognition, and delivering product value. This growth logic has two significant impacts on the company: first, it drives long-term resilience in performance growth, effectively mitigating macroeconomic and microeconomic risks under a multiple growth model; second, it creates strong competitive barriers, supporting long-term growth and capturing a larger market share. Moreover, the company has established eight modern production bases near seven key grain production areas in China, building a solid supply chain moat through "direct procurement from production areas and nearby processing." Overall, SHIYUE DAOTIAN achieves high growth in revenue performance through the dual-wheel drive of "staple food + leisure food," creating a diversified growth curve while enhancing profitability and maintaining strong cash flow. The company collaborates on both product and channel fronts, creating multiple growth engines that not only disperse risks but also establish a solid competitive barrier in conjunction with its supply chain, providing a safety margin for long-term sustainable growth. Additionally, SHIYUE DAOTIAN implements a long-term development strategy and integrates ESG initiatives into its operations, such as promoting rural revitalization through an order agricultural model. The company also prioritizes shareholder returns, consistently improving dividend rates through a "repurchase + dividend" model, with a dividend yield exceeding 8% and value return rates far exceeding market levels. As the multi-growth model continues to release its potential, it is expected to drive valuations into an upward trajectory.