Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [1][8]. Core Insights - The company reported a revenue of 5.21 billion yuan for 2024, representing a year-on-year increase of 15%, with a net profit of 581 million yuan, up 9% from the previous year [5]. - The gross margin decreased by 0.4 percentage points to 68.12% due to price adjustments aimed at enhancing cost-effectiveness, while employee costs as a percentage of revenue decreased by 2 percentage points to 27.29% due to improved operational efficiency [6]. - The company expanded its store network, with a total of 106 stores in first-tier cities and 291 in third-tier cities by the end of 2024, contributing to a 34% increase in revenue from the takeaway business [7]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 5.21 billion yuan, with a net profit of 581 million yuan, reflecting growth rates of 15% and 9% respectively [5]. - The forecast for 2025-2027 projects earnings per share (EPS) of 0.58, 0.69, and 0.83 yuan, with corresponding price-to-earnings (PE) ratios of 15, 13, and 11 times [8][11]. Operational Efficiency - The company improved operational efficiency, leading to a reduction in employee costs as a percentage of revenue, while other operational costs such as utilities and advertising saw slight increases [6]. - The takeaway business revenue reached 2.00 billion yuan in 2024, driven by an increase in service outlets, while dine-in revenue was 3.19 billion yuan, reflecting a 5% increase [7]. Market Expansion - The company continued to expand its store presence, adding a net of 22, 40, 20, and 49 stores in first-tier, new first-tier, second-tier, and third-tier cities respectively by the end of 2024 [7]. - The average consumer spending in various city tiers decreased, indicating a strategic price adjustment to maintain competitiveness [7].

Core Insights - Xiaocaiyuan has released its first financial report since going public, showing total revenue of 5.21 billion yuan in 2024, a year-on-year increase of 14.5%, and a net profit of 581 million yuan, up 9.1% [1][3] - The company plans to open approximately 120 new stores in 2025, with a target of exceeding 1,000 stores by 2026, and aims to expand into Southeast Asia [1][5] Revenue Breakdown - In 2024, Xiaocaiyuan's dine-in revenue was 3.19 billion yuan, a 4.6% increase, while takeout revenue surged from 1.49 billion yuan in 2023 to 2 billion yuan in 2024, marking a 34.2% growth [3][4] - The proportion of takeout revenue in total revenue rose from 32.8% to 38.5% [3] Operational Challenges - Despite revenue growth, the average dine-in customer spending dropped to 59.2 yuan, and the overall table turnover rate decreased to 3 times per day, with lower rates in third-tier cities [3][4] - The company operates 667 stores as of December 31, 2024, up from 536 the previous year, but same-store daily sales fell by 12.1% [4] Business Model and Strategy - Xiaocaiyuan operates a direct store model, with all over 600 stores being company-owned, and has a unique partnership model that binds equity with employees [4] - The company is focusing on globalization, digitalization, and sustainability as core strategic directions for future growth [5] Future Plans - The board has approved an overseas market expansion strategy, initially targeting Southeast Asia, with plans to open 1-2 overseas stores by 2025 [5] - Investment in technology will increase, particularly in smart kitchen systems and AI customer data analysis, to enhance operational efficiency and food safety [5]

Summary of the Conference Call for Xiaocaiyuan Company Overview - Xiaocaiyuan is recognized as the largest Chinese-style convenience dining brand in China, with a growing market position and brand influence [2][3]. Key Points and Arguments Financial Performance - In 2024, Xiaocaiyuan achieved a total revenue of 5.2 billion, a 15% increase from 4.5 billion in 2023 [8]. - The company's dine-in revenue was 3.19 billion, while takeout revenue reached 2 billion, with takeout growing by 34% from 1.49 billion in 2023 [9]. - Net profit increased by 9%, with a slight decrease in profit margin from 11.7% in 2023 to 11.1% in 2024, attributed to listing expenses [11]. - Total assets grew from 2.3 billion to 3.5 billion, a 55% increase, driven by fundraising and store expansion [11]. Business Strategy and Expansion - The company plans to open approximately 120 new stores in 2025, expanding into new markets such as Shandong and Xi'an [6]. - Xiaocaiyuan emphasizes a strategy of "delicious and affordable" meals, aiming to cater to the average consumer's needs [5][6]. - The management believes that the listing is a starting point for further growth, not an endpoint [5]. Operational Efficiency - Employee costs increased from 1.3 billion to 1.4 billion, but the proportion of employee costs relative to revenue decreased from 29% to 27% due to improved management and the introduction of cooking robots [10]. - The company is focusing on fine management and cost reduction strategies, including reducing recruitment costs and enhancing online partnerships with platforms like Meituan and Douyin [7][10]. Market Trends and Challenges - The management acknowledged that the overall dining industry is facing challenges, but Xiaocaiyuan has managed to maintain steady growth [4][5]. - The company is adapting to market changes, including consumer preferences for value dining options [5][6]. Future Outlook - The management is optimistic about 2025, expecting continued growth and profitability, with a focus on maintaining quality while reducing prices [5][6][21]. - There is a commitment to enhancing brand strength through marketing investments, with plans to allocate around 30 million for marketing in the future [42]. Additional Important Information - The management highlighted the importance of team stability and innovation in maintaining operational success, especially during challenging times like the pandemic [12][14]. - The company is exploring community dining options, indicating a potential new revenue stream [36]. - There is a focus on supply chain optimization, which is expected to enhance profitability and operational efficiency [27][38]. This summary encapsulates the key insights from the conference call, reflecting Xiaocaiyuan's current performance, strategic direction, and future outlook in the competitive dining industry.

Investment Rating - The report maintains an "Accumulate" rating for the company, with a target market capitalization of HKD 16 billion, reflecting a slightly higher than industry average PE of 22x for 2025 [7]. Core Views - The company has significant store expansion potential and strong growth prospects, with expectations for same-store sales recovery in 2025 [2]. - The 2024 revenue is projected at RMB 5.21 billion, representing a year-on-year increase of 14.5%, while the net profit is expected to be RMB 581 million, up 9.1% year-on-year [7]. - The company continues to expand its store network, with a total of 667 stores by the end of 2024, a 24.4% increase year-on-year [7]. Financial Summary - **Revenue**: - 2022: RMB 3,213 million - 2023: RMB 4,549 million - 2024: RMB 5,210 million (14.5% YoY growth) - 2025E: RMB 6,451 million - 2026E: RMB 7,736 million - 2027E: RMB 9,042 million [6] - **Net Profit**: - 2022: RMB 238 million - 2023: RMB 532 million - 2024: RMB 581 million (9.1% YoY growth) - 2025E: RMB 683 million - 2026E: RMB 813 million - 2027E: RMB 950 million [6] - **Profitability Ratios**: - Net profit margin for 2024 is 11.1%, down 0.6 percentage points year-on-year [7]. Store Expansion and Sales Performance - The company added 131 new stores in 2024, with net increases in various city tiers: - Tier 1: 22 stores - New Tier 1: 40 stores - Tier 2: 20 stores - Tier 3 and below: 49 stores [7]. - Same-store sales decreased by 12.1% in 2024, but improvements are anticipated in 2025 [7]. - The average customer spending in 2024 was RMB 59.2, down 9% year-on-year [7]. Cost Structure and Profitability - The gross margin for 2024 is 68.1%, a slight decrease of 0.4 percentage points year-on-year [7]. - Employee costs accounted for 27.3% of revenue, down 2.0 percentage points due to improved operational efficiency [7]. - Rent costs increased to 6.7% of revenue, reflecting the expansion of the store network [7].

Core Viewpoint - The company, Xiaocaiyuan, reported significant revenue and profit growth for the fiscal year ending December 31, 2024, and plans to expand its store network significantly by 2025, aiming for over 1,000 stores by 2026 [1][4][14] Financial Performance - Xiaocaiyuan's total revenue for 2024 was 5.21 billion RMB, representing a year-on-year increase of 14.5% [1][4] - The net profit for 2024 reached 581 million RMB, up 9.1% from the previous year, with basic earnings per share at 0.56 RMB [1][4] - The dine-in revenue was 3.19 billion RMB, a 4.6% increase from 3.05 billion RMB in 2023, while the takeout revenue surged from 1.49 billion RMB to 2 billion RMB, marking a 34.2% growth [4][12] Store Expansion Plans - The company plans to add approximately 120 new stores in 2025, with a target of exceeding 1,000 total stores by 2026 [1][13] - As of December 31, 2024, Xiaocaiyuan operated 667 stores, an increase from 536 stores the previous year [1][4] Market Strategy - Xiaocaiyuan aims to expand into Hong Kong and Singapore in 2025, focusing on both domestic and international markets [1][14] - The company emphasizes a direct store model without franchising, aiming for slow and steady growth based on customer word-of-mouth [13] Consumer Trends - The average dine-in spending per customer decreased from 65.2 RMB in 2023 to 59.2 RMB in 2024, with the most significant drop occurring in new first-tier cities [12][10] - The proportion of takeout revenue in total revenue increased from 32.8% to 38.5% in 2024, indicating a growing preference for takeout services [4][12] Operational Efficiency - The CFO highlighted that the company's strong procurement system and pricing adjustments contributed to the profit levels in 2024 [5] - The introduction of cooking robots in new stores is expected to enhance operational efficiency, although it is still in the trial phase [12]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 5,209,874, representing a 14.5% increase from RMB 4,549,415 in 2023[3] - Profit before tax increased by 3.6% to RMB 771,254 compared to RMB 744,119 in the previous year[3] - Net profit for the year was RMB 580,622, up 9.1% from RMB 532,059 in 2023[3] - Basic and diluted earnings per share rose to RMB 0.56, a 5.7% increase from RMB 0.53 in 2023[3] - Total comprehensive income for the year was RMB 585,417, reflecting a 10.3% increase from RMB 530,876 in 2023[6] - The profit attributable to ordinary equity shareholders for 2024 was RMB 567,470,000, an increase from RMB 532,059,000 in 2023, representing a growth of approximately 6.6%[29] - The company's adjusted net profit (non-IFRS measure) was RMB 586.2 million in 2024, compared to RMB 546.0 million in 2023[70] - The company's adjusted EBITDA (non-IFRS measure) increased from RMB 914.5 million in 2023 to RMB 968.9 million in 2024[70] Revenue Breakdown - Dine-in business revenue was RMB 3,191,554 thousand, up 4.6% from RMB 3,051,094 thousand in 2023, while takeout business revenue surged 34.3% to RMB 2,004,766 thousand from RMB 1,491,354 thousand[15] - Total revenue for 2024 reached RMB 5,209,874 thousand, an increase of 14.5% from RMB 4,549,415 thousand in 2023[15] - Total revenue increased by 14.5% from RMB 4,549.4 million in 2023 to RMB 5,209.9 million in 2024, driven by a RMB 140.5 million increase in dine-in revenue and a RMB 513.4 million increase in takeaway revenue[45] - Dine-in revenue rose by 4.6% from RMB 3,051.1 million in 2023 to RMB 3,191.6 million in 2024, attributed to an increase in the number of operating stores from 536 to 667[46] - Takeaway revenue surged by 34.4% from RMB 1,491.4 million in 2023 to RMB 2,004.8 million in 2024, with takeaway orders increasing from 18.9 million to 29.0 million[47] Assets and Liabilities - Non-current assets increased to RMB 1,548,174 from RMB 1,319,889 in 2023, showing a growth of 17.3%[7] - Current assets rose significantly to RMB 2,039,726, up from RMB 1,020,188 in 2023, indicating a growth of 100%[7] - Net assets increased to RMB 2,365,415 from RMB 623,092 in 2023, representing a substantial growth of 279.5%[8] - Total inventory for 2024 was RMB 109,566,000, up from RMB 104,898,000 in 2023, indicating a growth of approximately 4.0%[32] - Trade receivables decreased to RMB 30,730,000 in 2024 from RMB 33,707,000 in 2023, a decline of approximately 8.8%[34] - Trade payables decreased to RMB 56,932,000 in 2024 from RMB 81,577,000 in 2023, a reduction of about 30.3%[36] - Trade and other receivables increased from RMB 270.1 million as of December 31, 2023, to RMB 301.9 million as of December 31, 2024, driven by store network expansion and growth in takeaway business[73] - Trade payables decreased from RMB 280.5 million as of December 31, 2023, to RMB 228.5 million as of December 31, 2024, due to accelerated settlement processes with suppliers[74] Costs and Expenses - Total employee costs rose to RMB 1,421,596 thousand in 2024, compared to RMB 1,334,181 thousand in 2023, reflecting an increase of 6.5%[22] - The cost of goods sold for the year was RMB 1,661,021,000, compared to RMB 1,433,379,000 in 2023, reflecting an increase of about 15.9%[33] - The cost of materials and consumables rose by 15.9% from RMB 1,433.4 million in 2023 to RMB 1,661.0 million in 2024, with the percentage of these costs to revenue increasing from 31.5% to 31.9%[54] - Employee costs increased by 6.6% from RMB 1,334.2 million in 2023 to RMB 1,421.6 million in 2024, while the percentage of employee costs to revenue improved from 29.3% in 2023 to 27.3% in 2024[55] - Financial costs increased to RMB 41,122 thousand in 2024 from RMB 31,554 thousand in 2023, primarily due to higher lease liabilities interest[22] - The company's financial costs rose by 30.3% from RMB 31.6 million in 2023 to RMB 41.1 million in 2024, mainly due to increased lease liabilities from store network expansion[65] Taxation - The effective tax expense for 2024 was RMB 190,632 thousand, down from RMB 212,060 thousand in 2023, reflecting a decrease of 10.1%[25] - The company's effective tax rate decreased from 28.5% in 2023 to 24.7% in 2024, primarily due to an increase in profits from subsidiaries benefiting from preferential tax rates[66] Corporate Governance and Future Plans - The company aims to strengthen its leading position in the rapidly developing domestic casual dining sector, focusing on providing excellent dining experiences at affordable prices[86] - Future plans include optimizing service capabilities, launching more value-added services, and strategically expanding the store network for deeper market penetration[86] - The company has complied with all applicable corporate governance code provisions since the listing date[91] - The company has adopted the standard code for securities trading by directors, confirming compliance from the listing date until December 31, 2024[93] - The audit committee, consisting of independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2024[98] Shareholder Information - The board proposed a final dividend of RMB 0.3187 per share for the year ended December 31, 2024[3] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.3187 per share, totaling RMB 375 million, subject to shareholder approval[95] - The annual general meeting is scheduled for April 28, 2025, with a record date for dividend entitlement set for May 6, 2025[96] Market Presence - The company is primarily engaged in dine-in services, food delivery, and supply chain management in the People's Republic of China[9] - The company operates primarily in China, with no significant revenue from a single customer exceeding 10% of total revenue[16] - Revenue from first-tier cities accounted for 18.0% of total revenue in 2024, while revenue from third-tier cities and below represented 40.2%[49] Operational Metrics - The number of "Little Garden" stores reached 667 by December 31, 2024, compared to 536 stores a year earlier, reflecting the company's expansion strategy[46] - Average dine-in customer spending decreased from RMB 65.2 in 2023 to RMB 59.2 in 2024, indicating a shift in consumer preferences[50] - The overall table turnover rate declined from 3.2 in 2023 to 3.0 in 2024, suggesting a need for operational improvements[50] - The company's right-of-use asset depreciation increased by 30.7% from RMB 196.3 million in 2023 to RMB 256.5 million in 2024, primarily due to an increase in the number of operating stores[57] - Other asset depreciation and amortization rose by 31.0% from RMB 133.9 million in 2023 to RMB 175.5 million in 2024, also attributed to the increase in operating stores[58] - Other rental and related expenses surged by 59.0% from RMB 58.5 million in 2023 to RMB 93.1 million in 2024, mainly due to increased lease payments related to the expansion of the store network[59] - Delivery service expenses increased by 37.6% from RMB 257.9 million in 2023 to RMB 354.8 million in 2024, aligning with the growth in delivery business revenue, which rose from 32.8% of total revenue in 2023 to 38.5% in 2024[62] IPO and Capital Structure - The net proceeds from the IPO amounted to RMB 776,579,000 after deducting all capitalized listing expenses[38] - The company raised approximately HKD 794.8 million from the global offering, with 40% allocated to expanding the store network, 37% to enhancing supply chain capabilities, 13% to upgrading smart devices and digital systems, and 10% for working capital and general corporate purposes[94] - The company plans to utilize the net proceeds from the global offering by December 31, 2026, with specific timelines for each allocation[94] - The capital debt ratio was zero as of December 31, 2024, down from 8.0% as of December 31, 2023, primarily due to the reduction of bank loans and other borrowings to zero[79] Leadership - The chairman and CEO roles are currently held by the same individual, which the board believes will provide strong and consistent leadership[92] - The company will continue to review its corporate governance structure to assess the necessity of separating the roles of chairman and CEO[92]

Core Viewpoint - The "Small Garden" model provides an innovative solution for rural wastewater treatment, addressing challenges such as high costs and operational difficulties in traditional systems [1][2] Group 1: Cost-Effectiveness - The "Small Garden" model has a construction cost approximately 40% of that of centralized treatment systems, significantly lowering the economic barrier for rural areas to implement wastewater treatment [1] - This model is crucial for achieving comprehensive rural wastewater treatment and alleviating funding shortages [1] Group 2: Operational Simplicity - The "Small Garden" system requires minimal maintenance, with an annual maintenance cost of less than 10 yuan per household, making it suitable for areas with a lack of professional maintenance personnel [1] - The system occupies only about 6 square meters and operates without the need for electricity, further reducing operational burdens [1] Group 3: Resource Reutilization - The model transforms wastewater into usable resources, allowing treated water to be used for irrigation in nearby gardens and orchards, thus promoting ecological agriculture [2] - This approach aligns with the integration of ecology, production, and daily life in rural areas, enhancing community acceptance and participation in wastewater management [2]

消息面上，消息面上，3月10日，港股通标的名单迎来调整，小菜园获纳入港股通名单。公开资料显 示，小菜园是知名中国大众便民中式餐饮市场直营连锁餐厅之一，以业务规模和增长率计均居于业内顶 级行列。小菜园菜品主要以农家红烧肉、地锅仔鸡、臭鳜鱼等徽菜闻名。 华泰证券发布研报称，市场认为地方菜系市场接受度有限，难以实现可持续增长；小菜园作为区域品 牌，后续拓店速度及远期开店空间天花板较低。该行认为公司盈利韧性在往期已得一定验证，纵深式扩 张提升开店成功率，放大区域内规模效应，有望继续巩固同店盈利能力，形成店效增长-良性开店的正 反馈循环。 智通财经APP获悉，小菜园(00999)涨近10%，高见12.8港元再创新高。截至发稿，涨8.75%，报12.68港 元，成交额1.08亿港元，总市值逼近150亿港元。 港股异动 | 小菜园(00999)涨近10%再创新高 总市值 逼近150亿港元 机构称公司盈利韧性已得到验证 ...

小菜园两日涨超15%：消费政策暖风频吹，便民餐饮"钱"却没那么好赚了? 促消费春风频吹之际，深耕大众便民中式餐饮赛道的小菜园(00999)近期可谓涨势喜人。 3月17日，该股录得超11%的涨幅。3月18日，股价又涨近4%至11.66港元，两日股价涨超15%。对于这一家登陆港股市场不久的次新股，小菜园如此涨 势已然显露"潜力股"特质。 (行情来源：富途) 从消息面和政策面来看，小菜园此次股价不断攀升主要有两方面的利好。 一是，纳入港股通消息利好。3月10日，据深交所公告，深沪港通下港股通标的调整结果生效，其中，小菜园、毛戈平、贝壳-W和卫龙美味等27股被调 入。 二是，促消费政策的大力提振所致。近日中办、国办近印发《提振消费专项行动方案》，行动方案部署了8方面30项重点任务以促进消费能力。另外在 此前召开的商务部例行新闻发布会上，新闻发言人表示，今年将组织开展"中华美食荟"系列餐饮促消费活动，培育餐饮消费新热点。而商务部等部门将推出 120余项特色餐饮促消费活动。 当然，正如著名投资大师格雷厄姆所言：股市短期来说是一台投票机，长期来看是一台称重机。消息面及政策面带来的利好，对于投资信心而言只是短 期作用，长期来 ...