Company Overview - Guotou Securities has given Wei Long Delicious (09985) a "Buy-A" investment rating with a 6-month target price of HKD 14.27 [1] - Wei Long's classic spicy strips continue to provide stable cash flow, while products like konjac snacks and seaweed cater to health-conscious consumers, with projected revenue of CNY 3.37 billion in 2024, accounting for 54% of total revenue, making it the largest product category for the first time [1] Industry Trends - The spicy strip industry is experiencing expansion, with flavor differentiation reshaping the competitive landscape, where Wei Long's sweet and spicy flavor leads in market size [2] - The industry has seen a compound annual growth rate (CAGR) of over 20% from 2014 to 2023, indicating robust growth potential [3] Competitive Advantages - Wei Long leverages automated and transparent factories to enhance production efficiency and establish itself as a high-trust brand among consumers [2] - The company employs a differentiated strategy with five major flavor categories: sweet, spicy, fragrant, durian spicy, and regional spicy, continuously innovating its product matrix [2] - Wei Long capitalizes on the social aspect of spicy strip consumption, positioning its products as social currency among younger consumers, thereby increasing user engagement [2] Distribution and Channel Strategy - Wei Long's traditional dual-channel strategy strengthens control over distributors, with the number of cooperative distributors expected to increase to 1,879 in 2024, a year-on-year growth of approximately 10% [2] - The company has established a multi-channel approach with "snack wholesale - online platforms - O2O," creating a comprehensive competitive advantage [2] Future Outlook - The konjac food segment is still in its early growth phase, with significant market potential, and the versatility of konjac allows for extensive flavor innovation in the midstream processing [3] - Wei Long is encouraged to enhance flavor research and development, fully utilize its brand influence to promote new flavors, and expand its distribution network and SKU offerings to solidify its leading position [3]
国投证券：予卫龙美味(09985)“买入-A”评级 目标价14.27港元