Namchow Food(SH:605339) Chang Jiang Shang Bao·2026-01-22 09:02Core Viewpoint - Nanchao Foods (605339.SH), a leader in the baking industry, is experiencing stagnation in revenue growth and a significant decline in profits, with projected net profits for 2025 expected to drop by 78.39% to 81.99% compared to the previous year [1][3][4]. Financial Performance - The company anticipates a net profit attributable to shareholders of between 36.26 million and 43.52 million yuan for 2025, a decrease of 158 million to 165 million yuan year-on-year [3][4]. - The expected net profit excluding non-recurring items is projected to be between 30.88 million and 37.05 million yuan, reflecting a year-on-year decline of 79.71% to 83.09% [1][3]. - Revenue for 2025 is estimated at 3.065 billion yuan, down approximately 3% from 3.159 billion yuan in the previous year [1][8]. Cost and Margin Pressures - The decline in profitability is attributed to rising prices of key raw materials, leading to increased production costs and a drop in overall gross margin [4][6]. - The gross margin for the first three quarters of 2025 was 19.01%, down from 24.47% in the same period last year, with a record low of 17.05% in the third quarter [5][6]. Market Strategy and Future Outlook - Nanchao Foods plans to enhance its marketing strategy by focusing on the retail and catering sectors, aiming to build a broader market network [1][16]. - The company is increasing efforts to penetrate lower-tier markets and expand its distributor channels, with a reported 471 distributors as of mid-2025, a 9.79% increase year-on-year [8][16]. - Future initiatives include product innovation and a dual approach of deepening market layout while enhancing operational efficiency through improved production processes and supply chain management [16][17].