Hengshun Vinegar(SH:600305) Minsheng Securities·2024-11-01 06:00Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company reported a revenue of 1.531 billion yuan for the first three quarters of 2024, a year-on-year decrease of 6.51%, with a net profit attributable to shareholders of 120 million yuan, down 13.08% year-on-year. However, in Q3 2024, the company achieved a revenue of 527 million yuan, an increase of 5.64% year-on-year, and a net profit of 26 million yuan, up 79.99% year-on-year [2]. - The growth in the sauce category has accelerated, with the company focusing on expanding its restaurant and fresh food channels, developing larger-sized products, and enhancing its channel network [2]. - The gross profit margin for Q3 2024 was 35.61%, an increase of 9.47 percentage points year-on-year, attributed to product structure optimization [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved revenues of 527 million yuan, with a net profit of 26 million yuan, reflecting significant recovery compared to the previous year [2]. - The company’s revenue from vinegar, wine, and sauce series in Q3 2024 was 293 million, 104 million, and 53 million yuan respectively, with sauce showing a year-on-year increase of 26.11% [2]. - The company’s gross profit margin improved significantly, with a net profit margin of 5.02% in Q3 2024, up 2.07 percentage points year-on-year [2]. Future Projections - The company expects revenues of 2.05 billion, 2.23 billion, and 2.42 billion yuan for 2024, 2025, and 2026 respectively, with a projected net profit of 150 million, 172 million, and 195 million yuan for the same years [5][6]. - The report anticipates a PE ratio of 58, 50, and 44 for the years 2024, 2025, and 2026 respectively, indicating a positive outlook for the company's valuation [5][6]. Strategic Initiatives - The company is focusing on a "big single product" strategy to enhance resource integration and scale effects, while also optimizing its organizational structure and management practices [2]. - There is a continued emphasis on expanding B-end restaurant channels and improving the efficiency of the e-commerce team [2].