Ligao Foods (SZ:300973) Huaxin Securities·2024-11-03 04:55Investment Rating - The report maintains a "Buy" investment rating for the company [2][4]. Core Views - The company's revenue has slightly come under pressure, with a year-on-year increase of 5% in revenue for the first three quarters of 2024, totaling 2.717 billion yuan, while net profit attributable to shareholders increased by 28% to 203 million yuan [2][3]. - The UHT factory has officially commenced production, and the company is continuously adjusting its distribution channels to enhance performance [3][4]. - The company is expected to see further profit elasticity as the production capacity of cream products ramps up and market demand recovers [4]. Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 936 million yuan, a decrease of 1% year-on-year, while net profit attributable to shareholders increased by 35% to 68 million yuan [2][3]. - The gross margin for Q3 2024 decreased by 1 percentage point to 31.34%, primarily due to changes in product structure and rising prices of imported dairy products [2][3]. Production and Product Development - The second cream factory has completed sterile validation and is set to enter full production in Q4, which will support the company's high-end cream production for the year-end peak season [3][4]. - The introduction of new cream products has shown stable growth, although the overall revenue from frozen baked goods has been impacted by adjustments in product listings at key retail channels [3]. Profit Forecast - The earnings per share (EPS) estimates for 2024-2026 have been adjusted to 1.58, 1.86, and 2.25 yuan respectively, with corresponding price-to-earnings (PE) ratios of 23, 20, and 16 times [4][6].