YouYou Foods(603697) 开源证券·2025-03-04 19:01Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [4][10]. Core Views - The company is actively innovating to seek new growth points, with a potential turning point in performance growth expected in 2024. The core business of spicy chicken feet is stable, and new product development is showing promising results [4][5]. - The market for spicy chicken feet is large, with significant growth potential as the product evolves towards a more casual consumption style, appealing to younger demographics [4][5]. Summary by Sections Company Overview - The company has been focused on spicy chicken feet for over 20 years, establishing itself as a leading brand in the industry. It has achieved a sales scale of over 1 billion yuan, with a competitive advantage over smaller enterprises [4][23]. - The management structure is stable, with concentrated ownership that supports long-term development. The chairman holds 49.73% of the shares, ensuring strong control over company operations [25][27]. Business Performance - The core business of spicy chicken feet contributes significantly to revenue, accounting for 74.8% of total sales in 2023. The company is also expanding its product line with new offerings like deboned duck feet, which are expected to become a second growth curve [29][5]. - The company is actively pursuing new channels and markets, focusing on both traditional and emerging sales platforms to enhance national expansion [6][4]. Financial Performance - Historical performance has shown fluctuations, with revenue declining from 2015 to 2023 due to macroeconomic factors. However, a recovery is anticipated in 2024, with projected net profits of 1.5 billion yuan, 1.9 billion yuan, and 2.3 billion yuan from 2024 to 2026, reflecting year-on-year growth rates of 26.8%, 30.6%, and 21.1% respectively [11][38]. - The cost of raw materials, particularly chicken feet, significantly impacts profitability, with raw material costs accounting for 81.1% of total operating costs in 2023. The company aims to improve its profit margins as raw material prices stabilize [39][44]. Industry Analysis - The spicy chicken feet market is expected to grow, with the market size projected to reach 222.9 billion yuan by 2023. The demand for this product is driven by changing consumer preferences towards casual and convenient food options [47][50]. - The competitive landscape is fragmented, with many small to medium-sized enterprises. The company stands out as a market leader, with a revenue scale around 1 billion yuan, while the majority of competitors are smaller players [60][64]. Future Trends - The industry is poised for growth as consumer demographics shift towards younger, more diverse preferences for snack foods. The introduction of new flavors and product forms, such as boneless options, is expected to drive further market expansion [65][70]. - Emerging sales channels, including live e-commerce and membership-based supermarkets, are becoming increasingly important for growth, providing new avenues for reaching consumers [73][74].