Fuling Zhacai(SZ:002507) Nan Fang Du Shi Bao·2025-05-25 08:49Core Viewpoint - Fuling Pickle (002507.SZ) is actively expanding into the leisure snack market amid ongoing performance pressure, including a recent acquisition of a 51% stake in Sichuan Weizimei Food Technology Co., Ltd. to enhance its competitive edge and product offerings [1][4]. Financial Performance - For 2024, Fuling Pickle reported a revenue of 2.387 billion, a year-on-year decline of 2.56%, and a net profit attributable to shareholders of 799 million, down 3.29% [2]. - In Q1 2024, the company achieved a revenue of 713 million, a decrease of 4.75%, while the net profit was 272 million, showing a slight increase of 0.24% [3]. - The company’s cash flow from operating activities saw a significant increase of 87.59%, reaching 817 million [2]. Market Competition - The industry is characterized by intense competition, with many companies facing low profit margins due to low entry barriers [3][4]. - Fuling Pickle's competitors include brands like Huaitong, Tongqianqiao, and Yiquan, which also hold significant market influence [3]. Capacity Utilization and Expansion - The company faces concerns regarding underutilized capacity, with the Northeast production base's utilization rate falling below 37% in 2024 [4]. - Fuling Pickle's planned expansion project for a green intelligent production base has faced delays, with only 10.94% of the project completed by the end of 2024 [3]. New Market Ventures - The company is venturing into the leisure snack sector, which is also experiencing fierce competition and price wars [5]. - Competitors in the snack industry, such as Liangpinpuzi and Laiyifen, have reported significant losses, indicating the challenges within the sector [5][7].