Fuling Zhacai(SZ:002507) Guoxin Securities·2024-11-04 02:00Investment Rating - The investment rating for the company is "Outperform the Market" [3][7]. Core Views - The company reported a revenue growth of 6.81% year-on-year in the third quarter, indicating a recovery in profitability [4][5]. - For the first three quarters of 2024, the company achieved a total revenue of 1.962 billion yuan, a year-on-year increase of 0.56%, and a net profit attributable to shareholders of 671 million yuan, up 1.74% year-on-year [4][5]. - The improvement in revenue growth is attributed to a focus on core products, targeted marketing investments, and expansion into new product categories within the food service channel [4][5]. - The decrease in the purchase price of raw materials, particularly for green vegetable heads, contributed to a recovery in gross margin, which increased by 10.5 percentage points year-on-year to 56.2% in the third quarter [5][7]. - The company is expected to maintain a stable pricing strategy for its products, with cost advantages likely to continue into the next year [5][7]. Financial Forecasts - The company is projected to achieve total revenues of 2.5 billion yuan and 2.66 billion yuan in 2024 and 2025, respectively, with a year-on-year growth of 1.9% and 6.8% [7][8]. - The net profit attributable to shareholders is expected to be 840 million yuan and 890 million yuan for 2024 and 2025, reflecting a year-on-year growth of 2.1% and 5.0% [7][8]. - The earnings per share (EPS) are forecasted to be 0.73 yuan, 0.77 yuan, and 0.81 yuan for 2024, 2025, and 2026, respectively [7][8].