Investment Rating - The investment rating for the company is "Outperform the Market" [3][6]. Core Insights - The company reported a significant increase in revenue and profit, with a main business revenue of 2.939 billion HKD (up 26.3% year-on-year) and a net profit attributable to shareholders of 621 million HKD (up 39.0% year-on-year) for the first half of 2024. A cash dividend of 376 million HKD was proposed, corresponding to a payout ratio of 60.56% [3][6]. - The growth in revenue was driven by an increase in gross margin, which rose by 2.2 percentage points to 49.8%, attributed to improved capacity utilization and a decrease in some raw material prices. The gross profit increased by 32.2% [3][6]. - The company continues to expand its product range, particularly in vegetable products, which saw a revenue increase of 56.6% year-on-year, now accounting for 49.7% of total revenue [3][6]. Summary by Sections Revenue and Profit Growth - The company achieved a main business revenue of 2.939 billion HKD, reflecting a year-on-year growth of 26.3%. The net profit attributable to shareholders reached 621 million HKD, marking a 39.0% increase year-on-year. The proposed cash dividend is 376 million HKD, with a payout ratio of 60.56% [3][6]. Gross Margin and Expenses - The overall gross margin improved to 49.8%, up 2.2 percentage points year-on-year, due to enhanced capacity utilization and lower raw material costs. The gross profit increased by 32.2%. The sales expense ratio increased by 0.4 percentage points, while the management expense ratio decreased by 1.2 percentage points [3][6]. Product Strategy and Market Penetration - The company adopted a "multi-category, large single product" strategy, launching various products to meet diverse consumer needs. The vegetable product segment achieved a revenue of 1.461 billion HKD, up 56.6% year-on-year, and accounted for 49.7% of total revenue [3][6]. - The company’s seasoning noodle products generated 1.354 billion HKD in revenue, with a gross margin of 47.9%, while the vegetable products maintained a gross margin of 52.6% [3][6]. Channel Development - The company has established a nationwide distribution network with 1,822 offline distributors. Offline channels generated 2.590 billion HKD in revenue, up 25.4% year-on-year, while online channels achieved 349 million HKD, reflecting a growth of 33.2% [6][8]. - The online revenue includes 137 million HKD from online distribution and 165 million HKD from direct online sales, indicating a strong push towards online channel development [6][8]. Financial Forecast - The company is projected to achieve total revenues of 6.115 billion HKD, 7.503 billion HKD, and 8.962 billion HKD for 2024, 2025, and 2026 respectively, with net profits of 1.188 billion HKD, 1.505 billion HKD, and 1.833 billion HKD for the same years [5][6].

Investment Rating - The report maintains a "Buy" rating for the company with a current price of HKD 6.85 and a target price not specified for the next six months [1]. Core Insights - The company reported a revenue of CNY 2.94 billion for the first half of 2024, representing a year-on-year increase of 26.3%. The net profit attributable to the parent company was CNY 620 million, up 38.9% year-on-year, exceeding market expectations [2]. - The growth in vegetable products and the establishment of an omnichannel strategy are key drivers of performance. Revenue from seasoning noodles, vegetable products, and bean products reached CNY 1.35 billion, CNY 1.46 billion, and CNY 120 million respectively, with year-on-year growth rates of 5.0%, 56.6%, and 17.5% [2]. - The overall gross margin improved to 49.8%, an increase of 2.3 percentage points year-on-year, driven by enhanced capacity utilization and a decrease in raw material costs [2]. - The company is focusing on product innovation and channel expansion, particularly in the O2O and bulk snack channels, which are expected to contribute significantly to future growth [2]. Financial Summary - For the first half of 2024, the company achieved a gross margin of 49.8%, with a net profit margin of 21.2%, reflecting improvements in revenue and gross margin [2]. - The forecasted net profits for 2024, 2025, and 2026 are CNY 1.19 billion, CNY 1.41 billion, and CNY 1.62 billion respectively, with corresponding EPS of CNY 0.50, CNY 0.60, and CNY 0.69 [2][3]. - The company is positioned in a favorable market segment for spicy food products, with expectations for continued growth in multiple product categories [2].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 8.32 HKD, compared to the last closing price of 6.85 HKD [1][3]. Core Insights - The company reported better-than-expected performance for H1 2024, achieving a revenue of 2.936 billion CNY, a year-on-year increase of 26.3%, and a net profit of 621 million CNY, up 38.93% year-on-year [3]. - The growth in revenue was driven by a significant increase in the vegetable product segment, which saw a 56.6% year-on-year increase, surpassing the traditional noodle product segment for the first time [3]. - The company has successfully expanded its distribution channels, with a total of 1,822 offline distributors by the end of June, and has seen substantial growth in e-commerce and new retail channels [3]. - The gross margin improved to 49.8%, up 2.3 percentage points year-on-year, due to declining raw material prices and an increased proportion of high-margin vegetable products [3]. Financial Summary - For H1 2024, the company achieved revenues of 1.354 billion CNY from noodle products, 1.461 billion CNY from vegetable products, and 124 million CNY from bean products, with respective year-on-year growth rates of 5%, 56.6%, and 17.5% [3]. - The company expects revenue growth rates of 24.14%, 15.58%, and 13.16% for 2024, 2025, and 2026, respectively, with net profit growth rates of 37.23%, 15.55%, and 15.22% for the same years [4][3]. - The earnings per share (EPS) are projected to be 0.51 CNY, 0.59 CNY, and 0.68 CNY for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 12x, 11x, and 9x [4][3].

Investment Rating - The report maintains an "Outperform" rating for Weilong [2][10]. Core Insights - In the first half of 2024, Weilong achieved revenue of 2.94 billion yuan, a year-on-year increase of 26.3%, and a profit of 620 million yuan, a year-on-year increase of 38.9% [6][10]. - Vegetable products have become the largest category, with significant growth in seasoned noodle products, which resumed growth for the first time since early 2022 [7][10]. - The gross profit margin improved to 49.8%, up 2.3 percentage points year-on-year, driven by increased capacity utilization and a decline in raw material prices [8][10]. - The company declared an interim dividend of 0.16 yuan per share for 2024H1, totaling 376 million yuan, which is approximately 60% of the net profit for the period [9][10]. Revenue and Profitability - Revenue from vegetable products, seasoned noodle products, and soy products in 2024H1 was 1.35 billion, 1.46 billion, and 120 million yuan respectively, with year-on-year growth rates of 5.0%, 56.6%, and 17.5% [7][10]. - The net profit margin for 2024H1 was 21.1%, an increase of 1.9 percentage points year-on-year [8][10]. Financial Forecasts - The revenue forecasts for 2024 to 2026 are 5.83 billion, 6.69 billion, and 7.56 billion yuan, with corresponding net profits of 1.05 billion, 1.21 billion, and 1.39 billion yuan [10]. - The expected EPS for 2024 to 2026 is 0.45, 0.52, and 0.57 yuan respectively [10]. Valuation - Based on comparable company valuations, Weilong is assigned a target price of HK$9.77, reflecting a 20 times PE ratio for 2024 [10].

Summary of Conference Call Company and Industry - The company operates in the food industry, specifically focusing on vegetable products and snacks. Core Points and Arguments - In the first half of this year, the company achieved certain results in its various initiatives [1] - The company adheres to a multi-category and large single product strategy, emphasizing strict quality control [1] - For the first time, the sales of vegetable products surpassed that of spicy snacks in the first half of the year [1] Other Important but Possibly Overlooked Content - The company's commitment to quality and product diversification is a key aspect of its strategy, which may indicate a shift in consumer preferences towards healthier options [1]

Investment Rating - The report assigns a "Buy" rating to the company, Wei Long Mei Wei (9985.HK) [2]. Core Insights - The company is positioned in the spicy snack sector, with significant growth potential in its core products, spicy strips and konjac products. The report highlights the company's strong brand recognition and channel advantages, which are expected to drive market share growth [2][8]. - The company is projected to achieve an EPS of 0.49, 0.61, and 0.74 RMB for the years 2024 to 2026, respectively, with a target market value of 18.5 billion RMB by 2025, corresponding to a target price of 8.53 HKD per share [2][3]. Summary by Sections Investment Logic - The company is a leading brand in spicy snacks, with a market share of over 10% in the noodle products segment, indicating substantial room for growth compared to competitors [7]. - The konjac product line is experiencing a market expansion phase, with the company holding a 60-70% market share in this category, positioning it well for future growth [7][8]. Industry Overview - The spicy snack market in China was valued at 172.9 billion RMB in 2021, with a compound annual growth rate (CAGR) of 8.7% from 2016 to 2021, indicating a strong consumer preference for spicy flavors [17]. - The noodle products segment is a significant part of the snack food industry, with a market size of approximately 45.5 billion RMB in 2021, growing at a CAGR of 9.4% [17]. Competitive Advantages - The company has demonstrated strong product innovation capabilities and effective marketing strategies, which have helped it build a robust brand image and consumer loyalty [8][9]. - The management team is experienced, with a focus on industrialization and brand marketing, which has contributed to the company's growth trajectory [13][14]. Future Outlook - The company is expected to accelerate the introduction of new products, enhancing its market presence in both noodle and konjac segments [8]. - The overall supply chain efficiency is anticipated to improve, supporting stable profit growth as the company enters a revenue expansion phase [8].

Investment Rating - The report assigns a "Buy" rating for the company, Wei Long Mei Wei (9985.HK) [2]. Core Viewpoints - The company is positioned in the spicy snack sector, with significant growth potential in its core products, spicy strips and konjac products, which are expected to become classic categories in the snack market [7][8]. - The company has a strong brand presence and channel advantages, with a clear growth path for market share expansion in its core products [2][8]. - The report forecasts EPS for 2024, 2025, and 2026 to be 0.49, 0.61, and 0.74 CNY respectively, with a target market value of 18.5 billion CNY and a target price of 8.53 HKD per share [2]. Summary by Sections Investment Logic - The company is a leading brand in spicy snacks, with a historical preference for spicy flavors in Chinese cuisine, which enhances its market potential [7]. - The spicy strip product has a market share of over 10%, with significant room for growth compared to leading brands in other snack categories [7]. - The konjac product line is currently experiencing a market expansion phase, with the company holding a 60-70% market share in this segment [7][8]. Industry Overview - The spicy snack market is growing rapidly, with a market size of 172.9 billion CNY in 2021 and a compound annual growth rate (CAGR) of 8.7% from 2016 to 2021 [17]. - The report highlights the increasing consumer preference for low-calorie and healthy snacks, positioning konjac products favorably in the market [17]. Competitive Advantages - The company has demonstrated strong product innovation capabilities and effective marketing strategies, which have helped to establish its brand and expand its market presence [8]. - The company has a robust supply chain and is expected to improve its profitability as it enters a revenue expansion cycle [8]. Future Outlook - The company is expected to accelerate the introduction of new products, enhancing its market share in both spicy strips and konjac products [8]. - The long-term vision includes becoming a multi-category snack company, leveraging its strong brand and product innovation capabilities [8].

业绩简评 8 月 15 日公司发布半年度业绩，24H1 实现营收 29.4 亿元，同比 +26.3%；实现归母净利润 6.2 亿元，同比+38.9%。 经营分析 全品类恢复增长，提价影响逐步消化。1）分产品看，24H1 面制品 /菜制品/豆制品及其他销售额分别为 13.5/14.6/1.2 亿元，同比 +5.0%/+56.6%/+17.5%。受益于新规格补充及新品上市，面制品提 价约 2 年后恢复增长。菜制品延续高增，系魔芋爽老品稳健、小 魔女新品上市表现强劲。2）24H1 线下/线上渠道销售额同比 +25.4%/+33.2%。线下合作头部零食专营店、O2O、会员电商等新 兴渠道，且传统渠道单点卖力持续提升，助销辅销模式发挥成效。 24H1 公司经销商数量为 1822 家，较 23 年底增长 6.7%。3）分区 域来看，华东/华中/华北/华南/西南/西北/海外实现收入同比 +31.88%/+12.50%/+20.89%/+33.06%/+34.09%/+26.10%/-23.05%。 华中增速略慢，我们推测主要系零食量贩渠道竞争较为激烈，海 外下滑系同期高基数。 成本下行+产品结构优化+供应链完善，盈利能力持 ...

Investment Rating - The report assigns an "Accumulate" rating to the company [3][12]. Core Views - The company has demonstrated accelerated revenue and profit growth in the first half of 2024, driven by new product launches, channel expansion, and brand building, which are expected to strengthen its leading position in the segment and further unlock performance potential [3]. - The report revises the company's EPS forecasts for 2024, 2025, and 2026 to 0.47, 0.53, and 0.60 CNY respectively, reflecting an increase of +0.04, +0.02, and +0.01 CNY [3]. - The current stock price corresponds to a PE ratio of 13.5X for 2024, based on an exchange rate of 1 HKD = 0.92 CNY [3]. Revenue and Profit Performance - In the first half of 2024, the company reported revenue of 2.939 billion CNY, a year-on-year increase of 26.3%, and a net profit attributable to shareholders of 621 million CNY, up 38.9% year-on-year [3]. - The company declared an interim dividend of 0.16 CNY per share, totaling 376 million CNY, which represents approximately 60% of the net profit [3]. Product Category Performance - Revenue from vegetable products surged to 1.461 billion CNY, a year-on-year increase of 56.6%, making it the largest product category, accounting for 49.7% of total revenue [3]. - Revenue from seasoning noodle products reached 1.354 billion CNY, recovering with a 5.0% year-on-year growth, while revenue from bean products and others increased by 17.5% to 124 million CNY [3]. Channel Performance - Revenue from offline and online channels was 2.590 billion CNY and 349 million CNY respectively, with year-on-year growth of 25.4% and 33.2% [3]. - The company is experiencing growth in emerging channels such as snack wholesale, O2O, and e-commerce, with an expected increase in the proportion of direct sales [3]. Cost and Margin Improvement - The gross margin improved by 2.3 percentage points to 49.8% in the first half of 2024, driven by a favorable product mix and increased contribution from high-margin vegetable products [3]. - The net profit margin increased by 1.9 percentage points to 21.1% [3].

Investment Rating - The report maintains a rating of "Buy" for Weilang Delicious (9985.HK) [1] Core Insights - The revenue from vegetable products has shown remarkable growth, surpassing seasoning noodle products to become the company's largest category. The revenue for H1 2024 reached 2.939 billion yuan, a year-on-year increase of 26.3%, with net profit attributable to shareholders at 621 million yuan, up 38.9% year-on-year [4][5] - The company has successfully improved its gross margin to 49.8%, an increase of 2.3 percentage points year-on-year, driven by enhanced capacity utilization and a decrease in some raw material prices [5] - The company has focused on deepening its channel strategies and enhancing brand exposure through collaborations, which have contributed positively to revenue growth [5] Revenue Performance - For H1 2024, the revenue breakdown by product category is as follows: seasoning noodle products at 1.35 billion yuan (up 5.0% year-on-year), vegetable products at 1.46 billion yuan (up 56.6% year-on-year), and other products at 120 million yuan (up 17.5% year-on-year) [5] - The revenue from offline and online channels for H1 2024 was 2.59 billion yuan (up 25.4% year-on-year) and 350 million yuan (up 33.2% year-on-year), respectively [5] - Revenue growth by region for H1 2024 includes East China (+31.9%), Central China (+12.5%), North China (+21.0%), South China (+33.1%), Southwest (+34.9%), Northwest (+26.1%), and overseas (-23.1%) [5] Profitability Metrics - The sales expense ratio for H1 2024 was 16.2%, an increase of 0.4 percentage points year-on-year, primarily due to higher employee benefits and advertising costs [5] - The management expense ratio decreased to 8.2%, down 1.2 percentage points year-on-year, as rapid revenue growth diluted management costs [5] - The net profit margin for H1 2024 was 21.1%, an increase of 1.9 percentage points year-on-year [5] Future Earnings Forecast - The report raises the net profit forecast for Weilang Delicious for 2024-2026 to 1.104 billion yuan, 1.309 billion yuan, and 1.525 billion yuan, reflecting increases of 5%, 6%, and 9%, respectively [5] - The current stock price corresponds to a price-to-earnings ratio of 13x for 2024, 11x for 2025, and 10x for 2026 [5]