JINZAI FOOD GROUP CO.(SZ:003000) Guohai Securities·2024-10-27 17:00Investment Rating - The report maintains a "Buy" rating for the company [1][3][7] Core Views - The company has shown continuous improvement in profitability, with a significant increase in net profit and gross margin due to lower raw material costs and optimized supply chain efficiency [2][3] - The company is a leader in the leisure fish products sector and has successfully developed its second major product, quail eggs, with strong growth potential in its core categories [3][7] - The company is expected to achieve substantial revenue growth in the coming years, with projected revenues of 2.48 billion, 2.97 billion, and 3.55 billion yuan for 2024, 2025, and 2026 respectively [3][5][7] Financial Performance - For the first three quarters of 2024, the company achieved revenue of 1.77 billion yuan, a year-on-year increase of 18.65%, and a net profit of 215 million yuan, up 61.20% year-on-year [2][3] - The gross margin for Q3 2024 was 30.06%, an increase of 3.26 percentage points year-on-year, driven by cost reductions and product structure optimization [1][2] - The company’s net profit margin for Q3 2024 was 11.11%, reflecting a year-on-year increase of 2.31 percentage points [1][2] Market Position and Growth Drivers - The company has a stable offline channel performance, with significant growth in the snack wholesale channel, which saw over 100% year-on-year growth in the first three quarters [2][3] - The product mix is evolving, with small packaging products accounting for approximately 51% of sales, showing a growth of about 25% year-on-year [2][3] - The company is expected to launch upgraded products, such as the soft-boiled quail eggs, which are anticipated to enhance brand strength and market presence [1][2]