Zhongjing Food(300908)2024-11-13 00:27Investment Rating - The investment rating for the company is "Buy" (first coverage) [4][11]. Core Views - The company leverages the resource advantages of "Xixia mushrooms" to pioneer the mushroom sauce category, which has become a classic product with a market share of 53% by volume in 2023. Additionally, the company has actively introduced new products, with the Shanghai scallion oil rapidly gaining traction in e-commerce channels, achieving a market share of 70.1% by volume in 2023, thus opening up future growth potential [2][9]. Summary by Sections 1. Company Overview - Founded in 2002, the company initially focused on seasoning ingredients and later created the mushroom sauce in 2008, which has become a flagship product. The Shanghai scallion oil was launched in 2021 and has seen significant growth in e-commerce channels, contributing to the company's main business [6][16]. 2. Product Performance - The mushroom sauce has shown steady growth, with sales revenue increasing from 205 million yuan in 2016 to 324 million yuan in 2022, reflecting a CAGR of approximately 5%. The company is expected to maintain this growth trajectory due to its resource advantages and production technologies [7][34]. - The Shanghai scallion oil, launched in 2021, has become the second growth curve for the company, benefiting from urbanization and a favorable competitive landscape, with expectations for continued high double-digit growth [8][34]. 3. Financial Projections - Revenue projections for 2024-2026 are estimated at 1.128 billion yuan, 1.272 billion yuan, and 1.416 billion yuan, with year-on-year growth rates of 13.45%, 12.78%, and 11.29%, respectively. Net profit attributable to the parent company is projected to be 189 million yuan, 219 million yuan, and 252 million yuan for the same period, with growth rates of 9.52%, 15.81%, and 15.10% [8][11]. 4. Market Position - The company has established a strong market position with its mushroom sauce and scallion oil products, which are well-received in the market. The mushroom sauce is particularly dominant in the central and eastern regions of China, while the scallion oil has rapidly gained popularity through e-commerce platforms [29][36]. 5. Growth Drivers - The company's growth is driven by its innovative product development and effective channel expansion strategies. The online sales channel has become increasingly important, with e-commerce accounting for a significant portion of the revenue for the scallion oil product [21][29].