Sichuan Teway Food (SH:603317) KAIYUAN SECURITIES·2024-10-27 23:30Investment Rating - The investment rating for the company is "Outperform" (maintained) [1] Core Views - The company reported its Q3 2024 results, with revenue meeting expectations and profit slightly exceeding expectations. For the first three quarters of 2024, the company achieved revenue and net profit attributable to shareholders of 236.4 million and 43.2 million yuan, respectively, representing year-on-year growth of 5.84% and 34.96% [3] - The report anticipates a slight increase in profit forecasts for 2024-2026, with net profit attributable to shareholders projected at 57 million (+0.4 million), 64 million (+0.1 million), and 75 million (+0.1 million) yuan, reflecting year-on-year growth of 24.0%, 13.4%, and 17.1% respectively [3] - The report maintains an "Outperform" rating, considering the expected recovery in revenue during the second half of the year [3] Summary by Sections Financial Performance - In Q3 2024, the company experienced double-digit revenue growth, with online channel revenue increasing significantly by 55.38%. The revenue from offline channels grew by 5.98% [4] - The company's gross margin and net margin improved year-on-year by 0.77 percentage points and 7.33 percentage points, reaching 38.83% and 21.19%, respectively [5] - The report projects a full-year revenue growth of double digits, with expectations for improved profitability in Q4 2024 [6] Revenue Breakdown - For Q3 2024, revenue from various product lines showed growth: base ingredients increased by 1.14%, Sichuan seasoning by 18.07%, and winter seasoning by 19.68%. The report expects accelerated growth in base ingredient revenue in Q4 due to seasonal sales strategies [4] - Regionally, Q3 2024 revenue growth was observed in southern, central, western, and eastern regions, with year-on-year increases of 17.07%, 14.95%, 12.80%, and 8.93%, respectively [4] Financial Projections - The company’s projected revenue for 2024 is 347.7 million yuan, with a year-on-year growth of 10.4%. The net profit attributable to shareholders is expected to reach 56.6 million yuan, reflecting a year-on-year increase of 24.0% [7] - The report includes a detailed financial forecast, indicating a steady increase in revenue and net profit over the next few years, with EPS projected to rise from 0.53 yuan in 2024 to 0.71 yuan in 2026 [7]