SEAMILD FOODS(SZ:002956) Great Wall Securities·2025-03-03 07:37Investment Rating - The report maintains a "Buy" rating for the company [4][8]. Core Insights - The company, Ximai Foods, is positioned as a leading brand in the oat market, focusing on health-driven growth and market expansion [12][14]. - The oat market in China is expected to grow significantly due to increasing health awareness and aging population, with the company projected to benefit from this trend [26][27]. - Ximai Foods aims to create a comprehensive oat ecosystem and expand into the health food sector, with plans for international business development [47][50]. Summary by Sections Company Overview - Ximai Foods has been dedicated to the oat grain market for over 30 years, becoming the leading oat brand in China and surpassing competitors like Quaker in market share [12][28]. - The company operates under a family business model, ensuring stable management and a smooth transition of leadership [16]. Market Expansion - The oat market in China has a significant growth potential, with current consumption levels much lower than in developed markets like the U.S. [27]. - The company has achieved a market share of 24% in 2024, indicating strong competitive positioning [28]. Financial Performance - Revenue is projected to grow from 1,327 million RMB in 2022 to 2,863 million RMB by 2026, with a compound annual growth rate (CAGR) of 21.5% [1]. - Net profit is expected to increase from 109 million RMB in 2022 to 220 million RMB by 2026, reflecting a strong growth trajectory [1]. Growth Strategies - The company plans to implement three growth curves: building an oat ecosystem, expanding into the health food sector, and developing international markets [47][50]. - Ximai Foods is focusing on product innovation and channel expansion, including e-commerce and new retail formats, to enhance brand visibility and market reach [36][37]. Product Development - The product portfolio includes traditional oat products and new offerings like functional foods and snacks, catering to evolving consumer preferences [32][33]. - The company has established a comprehensive supply chain, ensuring quality control and cost efficiency [31]. Internationalization - Ximai Foods is beginning to expand its international presence, exporting to multiple countries and aiming to become a globally recognized oat brand [50].