Sichuan Teway Food (SH:603317) ZHONGTAI SECURITIES·2024-10-25 01:40Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 15% against the benchmark index in the next 6 to 12 months [2][5]. Core Insights - The company achieved a revenue of 2.364 billion yuan in Q1-Q3 2024, representing a year-on-year growth of 5.84%. The net profit attributable to the parent company reached 432 million yuan, up 34.96% year-on-year [2]. - In Q3 2024, the company reported a revenue of 897 million yuan, a year-on-year increase of 10.93%, with a net profit of 186 million yuan, reflecting a significant growth of 64.79% year-on-year [2]. - The company’s gross margin improved by 0.77 percentage points to 38.83% in Q3 2024, driven by a substantial decrease in sales expenses [2]. - The report projects revenue for 2024-2026 to be 3.375 billion, 3.843 billion, and 4.280 billion yuan respectively, with net profits of 588 million, 686 million, and 780 million yuan [2][4]. Financial Forecast and Valuation - The company’s earnings per share (EPS) are forecasted to be 0.55 yuan in 2024, 0.64 yuan in 2025, and 0.73 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 25.2, 21.6, and 19.0 [2][4]. - The net asset return rate is expected to increase from 10% in 2023 to 13% by 2026 [2][4]. - The report highlights a significant reduction in sales expenses, which is expected to enhance profitability [2]. Revenue and Profitability Trends - The company’s revenue growth rate is projected to stabilize at 7% in 2024, followed by 14% and 11% in 2025 and 2026 respectively [2][4]. - The report indicates that the company’s net profit margin is expected to improve significantly, reaching 20.70% in Q3 2024, up 6.77 percentage points year-on-year [2]. Market Performance - The company’s stock price as of October 24, 2024, is 13.90 yuan, with a market capitalization of approximately 14.8 billion yuan [2]. - The report emphasizes the company's strong performance in the online sales channel, which grew by 55.38% year-on-year in Q3 2024 [2]. Product and Regional Performance - In Q3 2024, the company’s hot pot seasoning, Chinese dish seasoning, and sausage and cured meat seasoning generated revenues of 303 million, 385 million, and 186 million yuan respectively, with growth rates of 1.14%, 18.07%, and 19.68% [2]. - Revenue growth varied by region, with the eastern region showing an increase of 8.93% [2].