Core Viewpoint - Ping An Securities report indicates that Anjuke Foods experienced a slight revenue growth of 0.80% year-on-year in the first half of 2025, but net profit declined by 15.79% due to rising raw material costs [1] Financial Performance - The company achieved operating revenue of 7.604 billion yuan in the first half of 2025 [1] - The net profit attributable to shareholders was 676 million yuan, reflecting a year-on-year decrease of 15.79% [1] Product Segment Analysis - Frozen prepared foods generated revenue of 3.759 billion yuan, down 1.94% year-on-year [1] - Frozen dishes saw revenue of 2.416 billion yuan, marking a growth of 9.40% year-on-year [1] - Frozen noodles and rice products reported revenue of 1.241 billion yuan, a decline of 3.89% year-on-year [1] - Agricultural and other products achieved revenue of 181 million yuan, down 4.57% year-on-year [1] - Only frozen dishes recorded positive growth among the product segments [1] Strategic Acquisitions - In July 2025, the company completed the acquisition of 70% of Jiangsu Dingwei Thai Food Co., Ltd. and 100% of Dingyifeng Food (Taicang) Co., Ltd. [1] - This acquisition allows the company to enter the frozen baking sector, which has good growth potential [1] - The company plans to integrate Dingwei Thai's advantages in high-end cod fish paste products and the comprehensive layout in the frozen baking sector [1] Management and Market Position - The company benefits from a strong management team, stable distributors, and accumulating scale advantages, which create competitive barriers [1] - There is optimism regarding the company's continued efforts in the frozen food and prepared dishes sectors [1]

Core Viewpoint - Citigroup's report indicates that Anjoy Foods' Q2 revenue grew by 6% year-on-year, meeting expectations, while net profit fell by 23% year-on-year, missing expectations due to rising raw material and manufacturing costs, as well as increased discounting leading to lower gross margins [1] Financial Performance - Q2 revenue increased by 6% year-on-year, aligning with market expectations [1] - Net profit decreased by 23% year-on-year, falling short of expectations [1] - Gross margin was negatively impacted by rising costs and increased discounting [1] Product Performance - Sales of meat, fish paste products, and noodle and rice products declined [1] - Sales of vegetable dishes increased, particularly for crayfish, which saw double-digit growth due to price recovery [1] Dividend Policy - Dividend payout ratio increased to 70% [1] Future Outlook - Citigroup has lowered its net profit forecasts for 2025 to 2027 by 10% to 14% to reflect reduced gross margin expectations [1] - Despite ongoing headwinds in the restaurant industry, Anjoy Foods remains attractive due to its strong product portfolio and channel expansion initiatives [1] - Citigroup maintains a "Buy" rating on Anjoy Foods, with a slight decrease in target price from HKD 75 to HKD 74.8 [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the pressure on profitability was concentrated in Q2, and there is a focus on increasing product channels during the peak season [7] - The company achieved a revenue of 76.04 billion yuan in H1 2025, with a year-on-year growth of 0.8%, while the net profit attributable to shareholders was 6.76 billion yuan, down 15.8% year-on-year [7] - The report notes that the company is experiencing a decline in gross margin due to rising raw material costs and increased promotional activities, with a Q2 gross margin of 18.0%, down 3.3 percentage points year-on-year [7] - New product launches and channel expansions are expected to drive revenue growth in the second half of the year, particularly with the introduction of higher-margin products [7] - The report has adjusted the profit forecast for 2025-2027, expecting net profits of 14.3 billion yuan, 16.2 billion yuan, and 19.1 billion yuan respectively, with a corresponding PE ratio of 18, 16, and 13 times [7] Financial Summary - Total revenue for 2023 is projected at 14,045 million yuan, with a year-on-year growth of 15.29% [1] - The net profit attributable to shareholders for 2023 is estimated at 1,478 million yuan, reflecting a year-on-year increase of 34.24% [1] - The latest diluted EPS for 2023 is forecasted to be 4.43 yuan per share [1] - The company’s total assets are expected to reach 17,375 million yuan in 2024, with a projected increase to 21,551 million yuan by 2027 [8] - The company maintains a high dividend payout ratio of 70% for the mid-year distribution [7]

Financial Performance - For the first half of 2025, the company's operating revenue was approximately 7.60 billion, a slight increase from 7.54 billion in the same period last year, reflecting a year-on-year growth of 0.8% [1] - The total profit for the same period was approximately 886 million, down from 1.06 billion year-on-year, indicating a decline of about 16.5% [1] - The net profit attributable to shareholders was approximately 676 million, a decrease from 803 million, representing a decline of about 15.8% [1] - The net profit after deducting non-recurring gains and losses was approximately 603 million, down from 772 million, showing a decline of about 21.9% [1] - The net cash flow from operating activities was negative 162.92 million, a significant decrease from 509.12 million in the previous year [1] Profitability Ratios - The weighted average return on equity for the first half of 2025 was 5.1%, down by 1.11 percentage points year-on-year [28] - The return on invested capital for the same period was 4.84%, a decrease of 0.95 percentage points compared to the previous year [28] Cash Flow Analysis - The net cash flow from operating activities was negative 1.63 billion, a decrease of 667.2 million year-on-year [30] - The net cash flow from financing activities was negative 168 million, an increase of 291 million year-on-year [30] - The net cash flow from investing activities was 276 million, compared to 36.26 million in the same period last year [30] Asset and Liability Changes - As of the end of the first half of 2025, cash and cash equivalents decreased by 20.81%, while inventory increased by 12.93% [44] - Short-term borrowings increased by 442.22%, indicating a significant rise in leverage [47] - Accounts receivable increased by 28.66%, reflecting a rise in credit extended to customers [44] Shareholder Composition - The top ten shareholders included a new entry, the CSI 500 ETF, replacing the previous quarter's National Social Security Fund [56] - The shareholding of the National Social Security Fund 102 portfolio increased, while several other funds reduced their holdings [56][57] Valuation Metrics - As of August 25, the company's price-to-earnings ratio (TTM) was approximately 18.91, the price-to-book ratio (LF) was about 1.93, and the price-to-sales ratio (TTM) was around 1.69 [1]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company is in a phase of operational adjustment, focusing on customized product innovation for supermarkets and embracing large B-end customers and new retail clients [5][6] - For the second half of the year, the company expects improved sales performance compared to June and July, although profitability may face pressure due to increased promotions, higher depreciation costs, and significant investments in new facilities [5][6] - The projected net profits for the years 2025 to 2027 are estimated at 1.495 billion, 1.705 billion, and 1.923 billion respectively, with corresponding EPS of 4.49, 5.12, and 5.77 [5][6] Financial Performance Summary - In the first half of 2025, the company achieved a revenue of 76.04 billion, a year-on-year increase of 0.8%, while the net profit attributable to the parent company was 6.76 billion, a decrease of 15.79% [5][6] - For Q2 2025, the company reported revenues of 40.05 billion, with a net profit of 2.81 billion, reflecting a year-on-year increase of 5.69% in revenue but a decrease of 22.74% in net profit [5][6] - The company’s gross margin for Q2 was 18.00%, down 3.29 percentage points year-on-year, primarily due to rising raw material costs and increased promotional activities [5][6] Product and Channel Performance - The company is actively expanding its customized products for supermarkets and new retail channels, with significant growth in frozen dishes, particularly a 20% increase in the sales of flavored crayfish [5][6] - Revenue from various product categories in Q2 includes frozen prepared foods at 17.50 billion, frozen dishes at 15.80 billion, and frozen rice and noodle products at 5.83 billion, with the latter experiencing a decline of 10.8% [5][6] - Revenue from different sales channels shows stability in the distributor channel, while new retail and e-commerce channels have seen rapid growth, with increases of 35.1% year-on-year [5][6]

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 100 yuan [1][6]. Core Views - The company is currently under pressure but is strategically positioning itself for recovery. The report highlights that despite short-term challenges, there is potential for improvement in the latter half of the year, particularly with new product launches and channel expansions [6][7]. Financial Performance Summary - **Revenue Forecasts**: Projected total revenue for 2024 is 15,127 million yuan, increasing to 15,778 million yuan in 2025, with a growth rate of 7.7% and 4.3% respectively [2][11]. - **Net Profit Forecasts**: Expected net profit for 2024 is 1,485 million yuan, decreasing to 1,411 million yuan in 2025, reflecting a growth rate of 0.5% and a decline of 5.0% respectively [2][11]. - **Earnings Per Share (EPS)**: EPS is projected to be 4.46 yuan in 2024, dropping to 4.23 yuan in 2025, and then increasing to 4.62 yuan in 2026 [2][11]. - **Profitability Ratios**: The report indicates a net profit margin of 7.0% for Q2 2025, down 2.6 percentage points year-on-year, with a gross margin of 18.0% [6][7]. Market Performance - The company's stock price as of August 25, 2025, was 77.06 yuan, with a market capitalization of approximately 256.83 billion yuan [3][6]. - The report notes that the company has experienced a significant increase in sales through new retail and e-commerce channels, with double-digit growth in these areas [6][7]. Product and Channel Insights - The company has seen varied performance across its product lines, with notable growth in new products such as small lobster products exceeding 1 billion yuan in revenue and a significant increase in sales of grilled sausages [6][7]. - The report emphasizes the importance of adapting to market demands and enhancing product offerings to improve revenue streams [6][7].

Core Viewpoint - The company reported its 2025 H1 financial results, showing a slight increase in revenue but a significant decline in net profit, indicating challenges in profitability despite stable revenue growth in certain product lines [1][5]. Financial Performance - In 2025 H1, the company achieved revenue of 7.604 billion yuan, a year-on-year increase of 0.80%, while net profit attributable to shareholders was 676 million yuan, a decrease of 15.79% [1]. - The company's Q2 results showed total revenue of 4.005 billion yuan, up 5.69% year-on-year, but net profit fell by 22.74% to 281 million yuan [1]. Product Matrix and Diversification - The company has a diverse product matrix, with revenue from frozen prepared foods, frozen dishes, frozen noodles, and frozen agricultural products amounting to 3.759 billion, 2.416 billion, 1.241 billion, and 181 million yuan respectively in H1 2025 [2]. - The company completed acquisitions of 70% of Jiangsu Dingwei Thai Food Co., Ltd. and 100% of Dingyifeng Food (Taicang) Co., Ltd., expanding into the frozen bakery segment [2]. B-end Performance and Strategy - The B-end business showed strong performance, with revenue from distributors, supermarkets, direct sales, and e-commerce reaching 6.043 billion, 423 million, 555 million, and 583 million yuan respectively in H1 2025 [3]. - The company is focusing on deepening partnerships with large B clients and new retail customers, enhancing channel potential through customized product offerings [3]. Sales Network and Market Expansion - The company reported revenue across various regions, with East China leading at 3.183 billion yuan, despite a year-on-year decline of 3.34% [4]. - The company has increased its number of distributors to 2,026 and is actively pursuing international market opportunities following its listing on the Hong Kong Stock Exchange [4]. Profitability and Cost Control - The company's gross margin and net margin for H1 2025 were 20.52% and 8.88%, reflecting a slight decline compared to the previous year [5]. - The company managed to reduce its expense ratios, particularly in sales and management, contributing to improved cost control [5]. Future Outlook - The company anticipates revenue growth to 15.317 billion, 16.553 billion, and 18.217 billion yuan for the years 2025 to 2027, with corresponding net profits of 1.511 billion, 1.637 billion, and 1.883 billion yuan [5].

Group 1 - The core viewpoint of the news is that Anjii Food (603345.SH) has reported its semi-annual results for 2025, highlighting significant institutional investor holdings and changes in share ownership [1] Group 2 - As of August 25, 2025, a total of 69 institutional investors hold shares in Anjii Food, with a combined holding of 138 million shares, representing 47.16% of the total share capital [1] - The top ten institutional investors account for 41.30% of the total shares, with a decrease of 1.00 percentage points compared to the previous quarter [1] Group 3 - In the public fund sector, 8 funds increased their holdings, while 24 funds decreased their holdings, with the latter accounting for a reduction of 1.07% [2] - A total of 26 new public funds were disclosed this period, while another 26 funds were not disclosed compared to the previous quarter [2] Group 4 - From the perspective of social security funds, one fund increased its holdings, while another decreased, with the latter showing a reduction of 0.33% [2] Group 5 - In the pension fund category, one fund decreased its holdings slightly, indicating a minor decline [3]

Investment Rating - The report maintains a "Recommended" rating for Anjoy Food (603345.SH) with a current stock price of 77.06 CNY [1]. Core Views - The company's profitability is under short-term pressure, awaiting improvement during the peak season [1]. - In H1 2025, Anjoy Food achieved a revenue of 7.604 billion CNY, a year-on-year increase of 0.80%, while the net profit attributable to shareholders was 676 million CNY, a year-on-year decrease of 15.79% [4]. - The report highlights that only frozen dishes recorded positive growth, while the company has made strategic acquisitions to enter the frozen baking sector, which is expected to provide growth opportunities [7][8]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue projections for 2025-2027 are 16.045 billion CNY, 17.294 billion CNY, and 18.668 billion CNY, respectively, with year-on-year growth rates of 6.1%, 7.8%, and 7.9% [6][10]. - Net profit forecasts for the same period are 1.532 billion CNY, 1.644 billion CNY, and 1.811 billion CNY, with corresponding year-on-year growth rates of 3.2%, 7.3%, and 10.1% [6][10]. - Profitability Metrics: - The gross margin is projected to remain stable at around 23.3% for the next few years, while the net margin is expected to slightly decline to 9.5% by 2026 [6][10]. - Valuation Ratios: - The price-to-earnings (P/E) ratio is expected to decrease from 16.8 in 2025 to 14.2 by 2027, indicating a potentially attractive valuation [6][10]. Product and Channel Performance - Product Segmentation: - In H1 2025, revenue from frozen prepared foods was 3.759 billion CNY (down 1.94%), while frozen dishes grew to 2.416 billion CNY (up 9.40%) [7]. - Channel Development: - The new retail and e-commerce channels showed significant growth, with a revenue increase of 20.92% to 583 million CNY in H1 2025 [8].

Core Viewpoint - Anjoy Foods Group Co., Ltd. reported a slight increase in revenue but a significant decline in net profit for the first half of 2025, indicating challenges in maintaining profitability amidst rising costs and market competition [2][3]. Financial Performance - Revenue for the first half of 2025 reached approximately RMB 7.60 billion, a 0.80% increase compared to RMB 7.54 billion in the same period last year [3]. - Total profit decreased by 16.51% to RMB 886.31 million from RMB 1.06 billion year-on-year [3]. - Net profit attributable to shareholders fell by 15.79% to RMB 675.94 million from RMB 802.65 million [3]. - The net cash flow from operating activities was negative at RMB -162.92 million, a decline of 132% compared to the previous year [3]. - The company's net assets increased by 2.98% to RMB 13.34 billion, while total assets decreased by 1.65% to RMB 17.09 billion [3]. Industry Overview - The Chinese frozen food industry is projected to reach a market size of approximately RMB 221.2 billion in 2024, making it the second-largest frozen food market globally [3]. - The frozen prepared food segment is expected to grow at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2029, driven by diverse dining preferences and increasing demand for quality products [3]. - The frozen dish segment is anticipated to grow at a CAGR of 16.1% during the same period, as industry standards improve and consumer demand for convenient, high-quality meals rises [3]. - The frozen noodle and rice products market is projected to reach RMB 77.1 billion in 2024, with traditional products maturing and new offerings gaining traction [3]. Business Operations - Anjoy Foods specializes in the research, production, and sales of frozen prepared foods, frozen dishes, and frozen noodle products, establishing a significant marketing network centered in East China [3][4]. - The company offers over 500 products, including fish tofu, fish balls, and various frozen dishes under multiple brands [4][5]. - The company has adopted a multi-brand strategy to cater to different market segments and enhance its product offerings [5]. Strategic Initiatives - Anjoy Foods is focusing on product innovation and market expansion, with a strategy to develop 3-5 strategic flagship products annually [5][13]. - The company is enhancing its supply chain efficiency through digitalization and AI integration, aiming to improve procurement, production, and sales processes [15][18]. - Recent acquisitions, including a 70% stake in Jiangsu Dingweitai Food Co., Ltd., are aimed at expanding into the frozen baking sector and enhancing product offerings [15][16]. Market Positioning - The company is actively pursuing opportunities in both domestic and international markets, with plans to leverage its recent Hong Kong listing to expand its global footprint [16]. - Anjoy Foods is adapting to changing consumer preferences by focusing on high-quality, customized products and enhancing its online and offline sales channels [12][14].