Hengshun Vinegar(SH:600305) Southwest Securities·2024-11-08 12:45Investment Rating - The report maintains a "Hold" rating for Hengshun Vinegar Industry (600305) [1] Core Views - The company's Q3 revenue shows slight improvement, with a year-on-year decline of 6.5% for the first three quarters, totaling 1.53 billion yuan, while net profit attributable to shareholders increased by 13.1% to 120 million yuan [1] - In Q3 2024, revenue reached 530 million yuan, reflecting a year-on-year growth of 5.6%, and net profit attributable to shareholders surged by 80% to 26 million yuan [1] - The growth in condiment products is strong, while vinegar and liquor products remain stable [2] - The company is undergoing internal reforms and is expected to enhance operational efficiency in the future [3] Summary by Sections Financial Performance - For the first three quarters, the revenue from vinegar, liquor, and condiment products was 980 million yuan, 260 million yuan, and 140 million yuan, with year-on-year changes of -5.2%, +2.2%, and -10.1% respectively [2] - Q3 2024 saw vinegar, liquor, and condiment product growth rates of -0.3%, +0.2%, and +26.1% respectively [2] - The gross margin for the first three quarters was 36.2%, up by 3.4 percentage points year-on-year, while Q3 gross margin was 35.6%, an increase of 9.5 percentage points [3] Future Outlook - The company plans to implement deep reforms to optimize its organizational structure and accelerate the implementation of its compensation assessment system [3] - It aims to focus on the "big single product" strategy to promote the simultaneous development of vinegar, liquor, and condiment categories [3] - The company is expected to face short-term performance pressure due to ongoing reforms, but medium to long-term growth is anticipated as product structure and channel development improve [3] Earnings Forecast - EPS is projected to be 0.13 yuan, 0.15 yuan, and 0.16 yuan for 2024, 2025, and 2026 respectively, with corresponding dynamic PE ratios of 61, 55, and 50 [4]