ZHONGYIN BABI FOOD CO.(605338) 山西证券·2024-10-28 08:23Investment Rating - The investment rating for the company is adjusted to "Accumulate-B" [2]. Core Views - The company reported a slight revenue growth of 2.04% year-on-year for the first three quarters of 2024, achieving a total revenue of 1.21 billion yuan. The net profit attributable to shareholders increased by 25.68% year-on-year to 194 million yuan, with a basic earnings per share of 0.78 yuan, up 27.87% year-on-year [1]. - The growth in revenue is attributed to an increase in the number of franchise stores, expansion of store business scale, and growth in group meal business revenue. The company is steadily advancing the expansion of franchise stores and improving single-store models [1][2]. - The company aims to enhance its product matrix and optimize its takeaway operations while focusing on differentiated products in the group meal business [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenues of 1.21 billion yuan, with a year-on-year growth of 2.04%. The net profit attributable to shareholders was 194 million yuan, reflecting a year-on-year increase of 25.68% [1]. - The company expects to achieve revenues of 1.687 billion yuan, 1.823 billion yuan, and 2.015 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 3.5%, 8.0%, and 10.5% [2][4]. - The projected net profits for the same years are 252 million yuan, 268 million yuan, and 293 million yuan, with corresponding year-on-year growth rates of 18.0%, 6.3%, and 9.1% [4][5]. Valuation Metrics - The company’s projected P/E ratios for 2024, 2025, and 2026 are 15.9X, 14.9X, and 13.7X, respectively [2][4]. - The projected ROE for the years 2024, 2025, and 2026 is expected to be 10.7%, 10.6%, and 10.7% [4][7]. - The gross profit margin for 2024 is projected to be 26.4%, with a slight increase to 27.5% by 2026 [4][7].