LEHUI International(SH:603076) Yong Xing Zheng Quan·2024-07-04 02:31Investment Rating - The report initiates coverage with a "Buy" rating for Lehui International [6][8]. Core Views - Lehui International has a leading position in the beer equipment industry, with a comprehensive layout and strong international client base, enhancing future performance certainty [1][6]. - The packaging machinery sector shows significant growth potential, with the company benefiting from a robust international strategy and increasing overseas revenue contributions [2][6]. - The craft beer market in China is expanding, with the company focusing on fresh beer products and successfully developing both distribution and direct sales channels [3][5][6]. Summary by Sections Company Overview - Established for over 30 years, Lehui International specializes in the design, manufacturing, installation, and service of beer, beverage, and dairy equipment, as well as sterile filling equipment [1][32]. - The company has a stable shareholding structure and experienced management team, which positively influences operational management [1][35]. Market Potential - The food packaging machinery market in China is projected to grow from 12.02 billion yuan in 2019 to 43.37 billion yuan by 2023, with a CAGR of 37.8% [2]. - The craft beer consumption in China is expected to rise significantly, with a projected CAGR of 17% from 2023 to 2025 [5]. Financial Performance - In 2023, the company achieved a revenue of 1.652 billion yuan, a year-on-year increase of 37.2%, with a net profit of 20 million yuan [7][38]. - Revenue forecasts for 2024-2026 are 2.032 billion yuan, 2.563 billion yuan, and 3.326 billion yuan, respectively, with expected growth rates of 23.0%, 26.1%, and 29.8% [6][7]. Investment Recommendations - The report emphasizes the company's strong technological capabilities and its unique "turnkey" service model, which is expected to continue driving revenue growth from international clients [6][49]. - The craft beer segment is anticipated to contribute significantly to revenue, with the company successfully expanding its fresh beer business through various channels [6][78].