Investment Rating - The report gives a "Buy" rating for the company, considering its strong brand influence, high market recognition, and advantages in store count and production capacity [4] Core Views - The company is expected to achieve EPS of 1.23, 1.42, and 1.60 yuan for 2024-2026, with corresponding P/E ratios of 12X, 10X, and 9X, which are lower than the industry average [4] - The company's revenue is projected to grow steadily, with 2024-2026 revenue estimated at 7.904, 8.514, and 9.097 billion yuan, respectively, with a CAGR of 8.85%, 7.71%, and 6.86% [5] - Net profit attributable to the parent company is expected to be 765.12, 877.83, and 993.93 million yuan for 2024-2026, with a CAGR of 14.73% and 13.23% [5] Industry Overview - The Chinese braised food market is expanding, with the market size expected to grow from 233 billion yuan in 2018 to 405.1 billion yuan in 2023, maintaining a steady growth rate of 9%-15% [3] - The industry is highly fragmented, with the top player, Juewei Food, holding a market share of only 5.39% in 2020, indicating significant room for growth for leading companies [3] Company Overview - The company has a stable and concentrated equity structure, with major shareholders including Shanghai Jucheng, Shanghai Huigong, Shanghai Chengguang, and Shanghai Fubo, holding 32.94%, 7.80%, 2.67%, and 2.44% of the shares, respectively [23] - The company has implemented equity incentive plans to motivate employees, with 847,800 stock options granted in 2022, covering 178 key employees, including 2 executives and 176 core staff [24] Business Strategy - The company follows a "land grab" strategy, rapidly expanding its store network, with the number of stores increasing from 1,000 in 2008 to 5,000 in 2013 [28] - The company is focusing on improving single-store revenue while maintaining steady store expansion, with the total number of stores reaching 15,950 in 2023, a net increase of 874 stores [80] Financial Performance - In 2023, the company achieved revenue of 7.261 billion yuan, a year-on-year increase of 9.64%, and net profit attributable to the parent company of 344.31 million yuan, a year-on-year increase of 46.63% [5] - The company's gross margin was 24.77% in 2023, down 0.80 percentage points year-on-year, mainly due to rising raw material costs, but is expected to improve in 2024 [67] Market Expansion - The company is actively expanding into lower-tier cities, with about 60% of its stores located in first- and second-tier cities, leaving significant room for growth in third- and fourth-tier cities [31] - The company has established 22 production bases (including 3 under construction), each covering a radius of 300-500 kilometers, ensuring efficient supply chain management [118] Product and Brand Strategy - The company's main revenue comes from fresh food products, with poultry products accounting for 72.71% of fresh food revenue in 2023 [84] - The company is targeting the "Z generation" as its main customer base, launching various flavored products and collaborating with popular IPs to attract younger consumers [122] Competitive Landscape - The braised food industry is highly fragmented, with the top three companies holding only 3.66% of the market share in 2020, indicating significant room for consolidation [172] - The company's main competitors include Zhou Hei Ya and Huang Shang Huang in the leisure braised food segment, and Zi Yan Food in the meal braised food segment [162]

Key Recommendations - The report emphasizes the importance of monitoring marginal performance changes and suggests positioning in individual stock opportunities within the pharmaceutical and biotechnology sector [1][52]. Economic Overview - The employment situation remains stable, with the urban survey unemployment rate at 5.0% in June 2024, unchanged from the previous month [5]. - In the first half of 2024, per capita income increased by 5.4% year-on-year, while actual consumption expenditure rose by 6.7%, indicating a 1.4% growth in income over expenditure [5]. Pharmaceutical and Biotechnology Sector Analysis - The total market capitalization of the pharmaceutical and biotechnology sector in A-shares is 5.56 trillion yuan, accounting for 6.54% of the total A-share market [7]. - The sector's trading volume for the week was 225.3 billion yuan, representing 6.49% of the total A-share trading volume, with a week-on-week increase of 8.58% [7]. - The report notes a net outflow of 1.838 billion yuan in main funds from the pharmaceutical industry last week [7]. Market Performance - The pharmaceutical and biotechnology sector slightly underperformed the broader market index, showing signs of stabilization. The report highlights a focus on individual stock performance during the earnings disclosure period [15]. - The sector has experienced a 21.07% decline year-to-date, underperforming the broader market by 22.27% [34]. - The current PE valuation for the pharmaceutical and biotechnology sector is 24.0 times, at a historical low, with a valuation premium of 108% compared to the CSI 300 index [34]. Consumer Spending Trends - In June 2024, the total retail sales of consumer goods reached 4.0732 trillion yuan, growing by 2.0% year-on-year, which is below the expected 4.0% [31]. - The report indicates that online consumption is declining, while offline consumption is recovering rapidly, with offline retail sales growing by 8.6% year-on-year in June [31]. Investment Suggestions - The report recommends focusing on high-quality stocks with strong performance and those with sufficient risk release and reversal expectations [15][37]. - Specific stock recommendations include Teva Biopharmaceuticals, Kelun Pharmaceutical, and others within the pharmaceutical sector [16][53].

行 业 研 究 [Table_Reportdate] 2024年07月16日 [table_invest] 标配 [Table_NewTitle] 6月社零同比+2.0%,可选消费承压 ——6月社零报告专题 行 业 深 度 [证券分析师 Table_Authors] 姚星辰 S0630523010001 yxc@longone.com.cn 证券分析师 任晓帆 S0630522070001 rxf@longone.com.cn 联系人 吴康辉 wkh@longone.com.cn 联系人 陈涛 cht@longone.com.cn [table_stockTrend] 相关报告 5月社零专题:5月社零维持温和复 苏,可选消费显弹性 4月社零专题:假日错月叠加高基 数,4月社零弱复苏 3月社零专题:3月社零受季节扰 动,未来仍具增长韧性 [table_main] 投资要点: ➢ 2024年6月社零同比增长2.0%,同比增速放缓。2024年6月社会消费品零售总额40732亿 元,同比增长2.0%,低于wind一致预期(+4.0%);增速较上月下滑1.7pct,受618大促时 间前置、汽车价格下行等因素影响,6月社 ...

Core Insights - The report emphasizes the stable pricing of photovoltaic silicon wafers and the steady progress in offshore wind construction, indicating a positive outlook for the renewable energy sector [2][6][74] - The report suggests that various segments of the power industry exhibit strong growth potential and stability, with a reshaping of the valuation system driven by electricity policies and supply-demand dynamics [5][40] Summary by Sections Power Industry Overview - The power industry is expected to benefit from high temperatures in summer, leading to increased cash flow and profitability for hydropower leaders such as Changjiang Power, Guikang Power, and Huaneng Hydropower [5] - Pumped storage leaders like South Grid Storage are anticipated to gain from policy support, with stable profitability and increasing installed capacity [5] - Nuclear power leaders such as China Nuclear Power and China General Nuclear Power are positioned to benefit from a redefined status and increasing installed capacity, supported by high barriers in cost and technology [5] - Thermal power leaders like Huadian International and Huaneng International are expected to benefit from declining coal prices and stable profitability from capacity trading [5] - Green power leaders such as Three Gorges Energy and Longyuan Power are likely to benefit from electricity reforms [5] Photovoltaic Sector - The report notes that silicon material prices remain stable, with domestic production expected to maintain around 150,000 tons in July, while downstream demand shows no significant improvement [59] - The report highlights that the production of silicon wafers is projected to be around 50.6 GW in July, with a slight decrease from June due to reduced operating rates among several companies [25][59] Wind Power Sector - The report indicates that the bidding and opening scale for onshore wind power continues to grow, supporting the annual new installed capacity, with significant projects being approved in various provinces [26] - The average bidding price for onshore wind turbines has shown signs of recovery, indicating a positive trend in the wind power sector [61] Nuclear Power Insights - The report discusses the global shift in nuclear power policies, suggesting a potential for continued revaluation of the sector, with domestic nuclear power expected to increase its share of total electricity generation from 4.6% in 2023 to 7% and 10% by 2030 and 2035, respectively [23] Hydropower Insights - The report highlights the defensive nature of hydropower, with high cash flow and dividend ratios, and anticipates improved performance due to favorable weather conditions this summer [57] Green Power Insights - The report notes that the decline in component and storage costs is expected to ease installation costs, while the launch of the green certificate trading system is anticipated to enhance the valuation of green power [73]

行 业 研 究 [Table_Reportdate] 2024年07月16日 行 业 周 报 [证券分析师 Table_Authors] 王敏君 S0630522040002 wmj@longone.com.cn 证券分析师 梁帅奇 S0630524070001 lsqi@longone.com.cn [table_stockTrend] -40% -31% -22% -14% -5% 4% 13% 23-07 23-10 24-01 24-04 申万行业指数:机械设备(0764) 沪深300 [相关研究 table_product] 1.6月挖机内销增速优于市场预期, 工程机械景气度持续边际改善—— 机械设备行业简评 [table_invest] 超配 [Table_NewTitle 重点品类内外销数据改善,关注工程机 ] 械升级、出海进程 ——机械设备行业周报(20240708-20240714) [table_main] 投资要点: ➢ 挖掘机内销数据再超CME预期,外销降幅收窄,景气度持续边际改善。据中国工程机械 工业协会统计,2024年6月主要企业销售各类挖掘机16603台,同比增长5.3%。其中, ...

晨 会 纪 要 [Table_Reportdate] 2024年07月16日 [证券分析师： Table_Authors] 吴骏燕 S0630517120001 wjyan@longone.com.cn ➢ 2.电车新品加速迭代，半年度销量数据亮眼——电池及储能行业周报（20240708- 20240714） ➢ 2.央行平价续作MLF。 2. 财经新闻 请务必仔细阅读正文后的所有说明和声明 晨会纪要 证券分析师：胡少华，执业证书编号：S0630516090002；证券分析师：刘思佳，执业 证书编号：S0630516080002 多数可选消费品增速下滑。从去年 6 月零售额绝对数看，服装鞋帽纺织品、化妆品、体 育娱乐用品、通讯器材零售额基数较前值有不同程度抬升，今年 6 月对应消费品增速均出现 下滑；金银珠宝基数平稳，6 月同比降幅收窄。地产竣工端，家电和音像器材类消费增速较 前值大幅回落 20.5 个百分点至-7.6%，或有基数抬升的原因；建筑及装潢材料类消费（-4.4%） 与前值基本持平，与之一致的是 6 月住宅竣工面积增速（-21.7%）并未有明显改善。 [Table_Report] [晨会纪要 Tab ...

Economic Overview - In Q2 2024, China's GDP grew by 4.7% year-on-year, below the market expectation of 5.1% and down from 5.3% in Q1[10] - The actual GDP growth for the first half of 2024 was 5.0%[5] Consumption Trends - In June 2024, the year-on-year growth of social retail sales was 2.0%, down from 3.7% in May and below the expected 4.0%[10] - The three-year compound growth rate for June was 2.7%, lower than May's 3.2%[36] - Restaurant income in June increased by 5.4% year-on-year, slightly up from 5.0% in May, while retail sales of goods fell to 1.5%[37] Investment Insights - Fixed asset investment in June showed a cumulative year-on-year growth of 3.9%, consistent with the previous month's 4.0%[10] - Manufacturing investment remained strong with a cumulative year-on-year growth of 9.5% in June, slightly down by 0.1 percentage points from the previous month[19] Real Estate Sector - Real estate development investment in June had a cumulative year-on-year decline of 10.1%, unchanged from the previous month[19] - The sales area of commercial housing in 30 cities increased by 23.6% month-on-month, indicating a slight recovery in the real estate market[19] Industrial Production - In June, the industrial added value grew by 5.3% year-on-year, slightly above the expected 5.0% but down from 5.6% in May[10] - The service sector maintained stability with a production index growth of 4.7% in June, compared to 4.8% in May[5] Risks and Challenges - Potential risks include international geopolitical tensions, overseas financial events, and domestic policy implementation falling short of expectations[5]

行 业 研 究 [Table_Reportdate] 2024年07月15日 行 业 周 报 [Table_Authors] 证券分析师 方霁 S0630523060001 fangji@longone.com.cn 联系人 蔡望颋 cwt@longone.com.cn [table_stockTrend] [table_product] 相关研究 1.兆易创新(603986.SH): 利基存储价格有望继续回暖, 增资长鑫产能或有保障——公 司简评报告 1. 新《措施》助力打造电子产品消 费新场景,2024Q3存储合约价季涨 幅环比收敛(20240624- 20240630) 2. HarmonyOS NEXT、盘古大模型 5.0亮相,尽显华为系统级AI生态建 设——电子行业周报(20240617- 20240623) 3. 《指南》落实AI产业标准化方 向,WAIC 2024共商AI领域向善治 理(20240701-20240707) [table_main] 投资要点: ➢ 电子板块观点:IoT板块头部企业2024H1业绩预告相继发布,行业营收利润均实现同比 高增,关注消费类IoT产品出海。台积电6月营收 ...

行 业 研 究 [Table_Reportdate] 2024年07月15日 行 业 周 报 [证券分析师 Table_Authors] 周啸宇 S0630519030001 zhouxiaoy@longone.com.cn 证券分析师 王珏人 S0630523100001 wjr@longone.com.cn 联系人 付天赋 ftfu@longone.com.cn 电 力 设 备 与 新 能 源 [table_stockTrend] -51% -40% -29% -18% -7% 4% 15% 23-07 23-10 24-01 24-04 申万行业指数:电力设备(0763) 沪深300 [相关研究 table_product] 1.成长性+稳健性兼备,电力改革助 推行业优势持续 ——电力行业深度 报告系列一 2.风光新增装机继续上升,硅片试探 性涨价 ——新能源电力行业周报 (2024/06/24-2024/06/28) 3.虚拟电厂调峰落地,构网型储能热 度提升——电池及储能行业周报 (20240624-20240630) [table_invest] 标配 [Table_NewTitle 光伏硅片]价 ...

行 业 研 究 [Table_Reportdate] 2024年07月15日 行 业 周 报 [证券分析师 Table_Authors] 姚星辰 S0630523010001 yxc@longone.com.cn 联系人 吴康辉 wkh@longone.com.cn 联系人 陈涛 cht@longone.com.cn -30% -25% -20% -15% -10% -5% 0% 5% 10% 23/07 23/10 24/01 24/04 24/07 食品饮料(申万) 沪深300 [相关研究 table_product] 1.白酒板块信心提振,新品助力市场 拓 展 — — 食 品 饮 料 行 业 周 报 (2024/7/1-2024/7/5) 2.头部酒企批价企稳,股东会战略坚 定 — — 食 品 饮 料 行 业 周 报 (2024.6.24-2024.6.30) 3.飞天批价底部震荡,啤酒旺季需求 催 化 — — 食 品 饮 料 行 业 周 报 (2024/6/17-2024/6/23) [table_invest] 超配 [Table_NewTitle 板块逐步企稳,关注业绩预告向好标的 ] ——食品饮 ...