Zhongjing Food(SZ:300908) CMS·2025-03-27 11:33Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company experienced a slight decline in Q4 revenue and net profit, with year-on-year changes of -0.4% and -18.75% respectively. However, the growth in the condiment food segment remains robust, particularly with over 30% growth in scallion oil sauce [1][8]. - The company is expected to see profit growth outpace revenue growth in 2025 due to stable costs and more efficient online investments. The focus on innovative condiment products is anticipated to drive high-quality growth and improve cash flow for shareholder returns [1][8]. Financial Performance - In 2024, the company achieved total revenue of 1.098 billion yuan, a year-on-year increase of 10.4%, and a net profit of 175 million yuan, up 1.81% year-on-year. Q4 alone saw revenue of 259 million yuan and net profit of 26 million yuan, reflecting a decline compared to the previous year [5][7]. - The company’s gross margin for 2024 was 41.73%, with a net margin of 15.98%, showing a slight decrease from the previous year due to rising costs of raw materials [5][7]. Product and Channel Performance - The condiment food segment generated revenue of 625 million yuan in 2024, up 12.1% year-on-year, with a notable 30% growth in scallion oil sauce. The offline channel accounted for one-third of total sales, indicating successful expansion efforts [5][8]. - Online sales increased by 29.86%, contributing to 22.5% of total revenue, highlighting the effectiveness of the company's dual-channel strategy [5][8]. Future Outlook - The company aims to stabilize the price of mushroom sauce and continue the growth of scallion oil sauce through enhanced channel integration. The condiment segment is expected to benefit from strategic partnerships with well-known companies in related industries [8][9]. - EPS forecasts for 2025 and 2026 are projected at 1.36 yuan and 1.53 yuan respectively, with a valuation of 21X for 2025 [1][8].