Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, indicating ongoing pressure on its core business, while maintaining a "buy" rating from analysts [1][2]. Financial Performance - In Q1 2025, the company achieved revenue of 1.2 billion yuan, a year-on-year decrease of 14.2% - The net profit attributable to shareholders was 84 million yuan, down 27.1% year-on-year - The net profit excluding non-recurring items was 79 million yuan, reflecting a decline of 27.5% year-on-year [1][2]. Revenue Breakdown - Revenue from bread and pastries was 1.19 billion yuan, down 14.4% - Other products generated revenue of 93 million yuan, an increase of 15.1% - Regional performance showed that only the Central China region experienced growth, with revenue of 50 million yuan, up 7.8% [2]. Profitability and Cost Structure - The gross margin for Q1 2025 was 22%, a decrease of 1.1 percentage points year-on-year - The sales expense ratio was 8.6%, down 0.2 percentage points; the management expense ratio was 2%, up 0.2 percentage points; the R&D expense ratio was 0.4%, down 0.1 percentage points; and the financial expense ratio was 0.7%, up 0.2 percentage points - The net profit margin was 7%, an increase of 0.1 percentage points year-on-year [3]. Capacity and Market Strategy - The company has established production bases in 24 regions across the country, with a total capacity of 237,000 tons - New production bases in Shanghai and Foshan are under construction, expected to release an additional 99,000 tons of capacity - The company is enhancing partnerships with emerging retail channels and exploring new retail models to strengthen brand competitiveness [3]. Earnings Forecast - EPS for 2025-2027 is projected to be 0.34 yuan, 0.36 yuan, and 0.39 yuan, respectively - Corresponding dynamic PE ratios are expected to be 17 times, 16 times, and 15 times [3].
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