Fuling Zhacai(SZ:002507) Huaxin Securities·2024-11-05 01:01Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company has shown signs of performance recovery, with significant improvements in gross profit due to the use of low-cost raw materials [1] - The company has released its Q3 2024 performance report, indicating a revenue of 6.57 billion yuan for Q3, a year-on-year increase of 7%, and a net profit of 2.23 billion yuan, up 18% year-on-year [1] - The gross margin for Q3 2024 increased by 10 percentage points to 56.17%, driven by the optimization of gross profit performance [1] - The company is actively reforming its marketing strategy and expanding its product range, including the introduction of new products in the e-commerce sector [1] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 19.62 billion yuan, a year-on-year increase of 1%, and a net profit of 6.71 billion yuan, up 2% [1] - The company’s Q3 2024 revenue and net profit figures reflect a positive trend, with a gross margin improvement and a net profit margin increase to 33.91% [1] Product Strategy - The company is gradually releasing products in the 2 yuan price range and has launched a new stir-fried series in e-commerce, with plans for nationwide rollout of radish products in Q4 [1] - The company is focusing on personalized products and flexible production to enhance price competitiveness and meet market demands [1] Earnings Forecast - The report adjusts the earnings per share (EPS) forecast for 2024-2026 to 0.73, 0.77, and 0.80 yuan respectively, maintaining a price-to-earnings (PE) ratio of 21, 20, and 19 times [2][3]