Anjoy food(SH:603345) Zheng Quan Zhi Xing·2025-08-28 14:05Core Viewpoint - The report highlights that cost pressures are impacting profitability for Anjii Food, while the company is focusing on enhancing new product development efficiency, maintaining a "buy" rating for the stock [1]. Financial Performance - In the first half of 2025, Anjii Food reported total revenue of 7.604 billion yuan, a year-on-year increase of 1%, and a net profit attributable to shareholders of 676 million yuan, a decrease of 16%. The adjusted net profit was 603 million yuan, down 22% [2]. - For Q2 2025, total revenue reached 4.005 billion yuan, up 6% year-on-year, while net profit attributable to shareholders was 281 million yuan, down 23%, and adjusted net profit was 260 million yuan, down 26% [2]. Investment Highlights - Cost pressures have led to a decline in gross margin, with Q2 2025 gross margin decreasing by 3 percentage points to 18.00%. This was primarily due to rising costs of raw materials like crayfish and fish paste, along with increased manufacturing expenses and promotional efforts [3]. - The sales expense ratio increased by 0.1 percentage points to 4.96%, while the management expense ratio decreased by 1 percentage point to 2.66%, mainly due to a decline in share-based payment expenses. The net profit margin for Q2 2025 decreased by 3 percentage points to 7.03% [3]. Product and Channel Performance - In Q2 2025, revenue from frozen prepared foods was 1.750 billion yuan, a decrease of 1%, while the revenue from frozen vegetable products increased by 26% to 1.580 billion yuan. Revenue from frozen noodle and rice products decreased by 11% to 583 million yuan [4]. - The company launched a new meat-based sausage series targeting the consumer market, which is expected to enhance profitability alongside the B2B volcanic stone sausage series [4]. - Revenue from distribution channels in Q2 2025 was 3.134 billion yuan, an increase of 2%, with significant contributions from major distributors and a 19% increase in direct sales revenue [5]. Profit Forecast - The company is optimistic about its performance, expecting continued resilience despite demand pressures. The establishment of new business units is aimed at optimizing resource allocation, and with stabilizing raw material costs, profit margins are anticipated to recover [6]. - The adjusted earnings per share (EPS) forecasts for 2025-2027 are 4.33, 4.76, and 5.33 yuan, respectively, with current stock prices corresponding to price-to-earnings (PE) ratios of 17, 16, and 14 times [6].