香飘飘：杯饮天地新，香飘知行路

Investment Rating - The report initiates coverage on Xiang Piao Piao with a "Buy" rating [1] Core Views - Xiang Piao Piao is the leader in the instant cup milk tea market, holding over 60% market share for 12 consecutive years [1] - The company has adopted a dual-drive strategy of "instant + ready-to-drink" to mitigate seasonal fluctuations and diversify its product portfolio [1] - The ready-to-drink segment, particularly Meco fruit tea, has shown potential but faces challenges in scaling up [1][2] - The company has introduced new products like frozen lemon tea to enrich its ready-to-drink product matrix and expand its market reach [2] - The appointment of a new professional manager is expected to enhance the company's management capabilities [2] Business Performance and Strategy Instant Milk Tea - Xiang Piao Piao's instant milk tea revenue reached 2.69 billion yuan in 2023, accounting for the majority of its total revenue [1] - The company is focusing on product upgrades and channel penetration to drive growth in the instant milk tea segment [1] - New products like the "Ru Xian" series aim to cater to the health-conscious trend and create a second growth curve for the instant milk tea business [1] Ready-to-Drink Segment - The ready-to-drink segment generated 900 million yuan in revenue in 2023, with Meco fruit tea being the flagship product [1] - The company has established an independent sales team for the ready-to-drink segment to improve operational efficiency [2] - The ready-to-drink segment is expected to break even by 2026, with revenue projected to exceed 1.8 billion yuan [2] Market and Industry Analysis - The Chinese ready-to-drink tea market is valued at approximately 119 billion yuan in 2023, with a growth rate of 4.6% [83] - The market is transitioning towards healthier options, with low-sugar and sugar-free products gaining popularity [87] - The competitive landscape is dominated by established players like Master Kong and Uni-President, but new entrants are making inroads with innovative products [88] Management and Governance - The company has introduced a professional manager system, with Yang Dongyun appointed as the new general manager, bringing extensive experience in the FMCG sector [2][36] - The company's management structure is concentrated, with the founding family holding a significant stake, but the introduction of professional management is expected to improve governance [36] Financial Projections - The company's revenue is expected to grow from 3.63 billion yuan in 2023 to 5.32 billion yuan in 2026, with a compound annual growth rate (CAGR) of 13.56% [1] - Net profit attributable to shareholders is projected to increase from 280.3 million yuan in 2023 to 511.34 million yuan in 2026, with a CAGR of 21.68% [1] - The EPS is forecasted to rise from 0.68 yuan in 2023 to 1.24 yuan in 2026, with a P/E ratio decreasing from 17.42 to 9.55 over the same period [1]