Ligao Foods (SZ:300973)2024-10-30 03:38Investment Rating - The investment rating for the company is maintained at "Outperform" [5] Core Views - The company reported a revenue of 2.717 billion yuan for Q3 2024, a year-on-year increase of 5.22%, and a net profit attributable to shareholders of 203 million yuan, up 28.21% year-on-year [5] - The company is expected to see net profits of 272 million yuan, 335 million yuan, and 375 million yuan for the years 2024, 2025, and 2026 respectively, indicating significant growth [5][6] - The company is positioned well in the frozen baking industry, which is transitioning from an introduction phase to a rapid growth phase, benefiting from increasing demand for semi-finished products [5] Financial Summary - For Q3 2024, the company achieved a gross margin of 32.17%, a slight decrease of 0.35 percentage points year-on-year [6] - The company’s net profit margin increased by 1.9 percentage points to 7.14% in Q3 2024, attributed to effective cost control measures [6] - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.60 yuan, 1.98 yuan, and 2.21 yuan respectively, with corresponding price-to-earnings (PE) ratios of 22x, 18x, and 16x [5][6] Market Position and Growth Drivers - The company’s revenue from baking raw materials grew approximately 30% year-on-year, driven by strong sales of cream products [5] - The company is focusing on product, channel, and supply chain transformations, which are beginning to show positive results [5] - The competitive landscape is improving, with revenue growth exceeding expectations, which is seen as a catalyst for stock price appreciation [6]