Zhongjing Food(SZ:300908) HUAXI Securities·2025-03-31 06:27Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved a revenue of 1.098 billion yuan in FY24, representing a year-on-year growth of 10.40%, and a net profit attributable to shareholders of 175 million yuan, with a growth of 1.81% [2] - The company plans to distribute an annual dividend of 0.8 yuan per share, resulting in a cumulative dividend of 1 yuan per share for FY24, with a payout ratio of 83% [2] - The company is focusing on expanding its distribution channels and enhancing shareholder returns, with a strong emphasis on the growth of its scallion oil sauce product [5] Summary by Sections Financial Performance - In FY24, the company reported revenues of 1.098 billion yuan, with a net profit of 175 million yuan, and a non-recurring net profit of 167 million yuan, showing growth rates of 10.40%, 1.81%, and 1.83% respectively [2] - For Q4 FY24, the company recorded revenues of 259 million yuan, a slight decline of 0.36% year-on-year, and a net profit of 26 million yuan, down 18.77% year-on-year [2] Product and Channel Analysis - The company's seasoning food segment showed steady growth, with revenues from seasoning foods, seasoning ingredients, and other businesses reaching 625 million, 462 million, and 10 million yuan respectively, with year-on-year growth rates of 12.12%, 6.60%, and 250% [3] - The company expanded its distribution channels, with revenues from distribution, direct sales, and other businesses reaching 428 million, 660 million, and 10 million yuan respectively, with year-on-year growth rates of 0.37%, 16.75%, and 250% [3] Cost and Profitability - The gross margin for FY24 was 41.7%, while for Q4 it was 38.4%, reflecting a year-on-year change of +0.14% and -3.21 percentage points respectively [4] - The company faced cost pressures due to rising raw material prices, particularly for scallions and mushrooms, which impacted profitability [4] - The net profit margin for FY24 was 16.0%, down 1.35 percentage points year-on-year, while the non-recurring net profit margin was 15.19%, down 1.28 percentage points [4] Future Outlook - The company aims for continuous revenue growth in its main business for 13 consecutive years, with a focus on enhancing the consumer experience for its scallion oil sauce product [5] - Revenue forecasts for FY25 and FY26 have been adjusted to 1.213 billion and 1.335 billion yuan respectively, with EPS estimates revised to 1.34 and 1.48 yuan [6]