Juewei Food (SH:603517) Xin Lang Cai Jing·2025-04-16 08:46Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with a focus on restructuring and improving store performance amidst a challenging market environment [1][3]. Financial Performance - In 2024, the company achieved operating revenue of 6.26 billion yuan, a year-on-year decrease of 13.8%, and a net profit attributable to shareholders of 230 million yuan, down 34.0% [1]. - For Q1 2025, the company reported operating revenue of 1.5 billion yuan, a decrease of 11.5%, and a net profit of 120 million yuan, down 27.3% [1]. - The gross margin for 2024 and Q1 2025 was 30.5% (+5.8 percentage points) and 30.8% (+0.8 percentage points), respectively, benefiting from lower raw material prices and improved supply chain efficiency [2]. Revenue Breakdown - In 2024, revenue from marinated food sales was 5.22 billion yuan, a decline of 13.7%, primarily due to a reduction in store numbers and slight declines in single-store sales [1]. - Revenue from franchise management, centralized procurement, and supply chain logistics saw year-on-year declines of 26.3%, 38.5%, and an increase of 10.3%, respectively [1]. - Revenue by region showed significant declines, with the Southwest down 4.9%, Northwest down 45.1%, Central China down 10.6%, South China down 18.1%, East China down 15.3%, North China down 14.1%, and Hong Kong, Macau, Taiwan, and overseas down 22.2% [1]. Strategic Initiatives - The company is implementing a "brand upgrade + digital drive + lean operation" framework to stabilize operations, although short-term challenges remain due to a tough consumer environment and increased market competition [3]. - The company plans to close underperforming stores and shift its strategy to enhance single-store revenue and efficiency, aiming to improve the survival and profitability of franchisees [1][3]. Future Outlook - The marinated food sector has significant growth potential, and the company is positioned as a leading player in this industry [3]. - With the implementation of consumer stimulus policies in 2025, external demand is expected to improve, and store numbers may stabilize, leading to potential recovery in single-store profitability [3]. - Profit forecasts for 2025-2027 are 490 million yuan, 550 million yuan, and 610 million yuan, with corresponding EPS of 0.81 yuan, 0.91 yuan, and 1.01 yuan, and dynamic PE ratios of 20x, 18x, and 16x [3].