Fuling Zhacai(SZ:002507) Tianfeng Securities·2025-03-03 10:00Investment Rating - The investment rating for the company is "Buy" with a target price reflecting a potential return of over 20% within the next six months [4]. Core Views - The company reported a slight decline in performance for Q4 2024, with revenue and net profit at approximately 4.46 billion and 1.53 billion yuan, respectively, representing year-on-year decreases of 10.58% and 8.36% [1]. - Despite the challenges, the company maintains a net profit margin of 34.40% for Q4 2024, an increase of 0.83 percentage points year-on-year [1]. - The company is focusing on optimizing its core pickled vegetable products and diversifying its offerings, aiming to enhance management efficiency and adapt to changing consumer behaviors [1]. - The outlook for 2025 is optimistic, with expected revenue growth of 8% and 7% for 2025 and 2026, respectively, driven by stable prices for key ingredients and continued expansion in the restaurant channel [2]. Financial Summary - For 2024, the company anticipates revenue of approximately 2.41 billion yuan, a decrease of 1.71% year-on-year, while net profit is expected to be around 823.98 million yuan, a slight decline of 0.31% [8]. - The projected revenue for 2025 is 2.59 billion yuan, reflecting a growth rate of 7.55%, with net profit expected to rise to 937.94 million yuan, an increase of 13.83% [8]. - The company's earnings per share (EPS) is projected to be 0.71 yuan for 2024, increasing to 0.81 yuan in 2025 [8]. - The price-to-earnings (P/E) ratio is expected to be 18.81 for 2024 and decrease to 16.52 for 2025, indicating a favorable valuation trend [8].