Ligao Foods (300973) 国泰君安·2024-10-29 21:37Investment Rating - The report maintains a "Buy" rating for the company [4][6] - The target price has been raised to 42.00 yuan from the previous 31.81 yuan [4][6] Core Insights - The company's profit growth exceeded market expectations, with a reported revenue of 2.717 billion yuan for Q3 2024, a year-on-year increase of 5.22%, and a net profit of 203 million yuan, up 28.21% year-on-year [4][6] - The company is expected to achieve EPS of 1.71, 1.99, and 2.20 yuan for 2024, 2025, and 2026 respectively, reflecting significant growth [4][6] - The report highlights the company's multi-category and multi-channel strategy as a key driver for excess returns in the baking industry [3][4] Financial Performance Summary - For Q3 2024, the company achieved a single-quarter revenue of 936 million yuan, a decrease of 1.11% year-on-year, while net profit for the quarter was 68 million yuan, an increase of 35.07% year-on-year [4] - The revenue breakdown shows that frozen baked goods accounted for approximately 58% of total revenue, down about 7% year-on-year, while baking raw materials contributed about 42%, up approximately 30% year-on-year [4] - The gross margin for Q3 2024 was 31.34%, a slight decrease of 0.55 percentage points year-on-year, while the net margin improved to 7.14%, an increase of 1.9 percentage points year-on-year [4] Market Position and Strategy - The company is focusing on enhancing management efficiency and expanding its product offerings across various channels, including retail and food service [4] - The report indicates a positive outlook for the company as it continues to penetrate the baking industry and leverage its product portfolio to outperform competitors [4][6]