Juewei Food (SH:603517) KAIYUAN SECURITIES·2025-04-13 05:23Investment Rating - The investment rating for the company is maintained at "Outperform" [1] Core Insights - The company is experiencing pressure on same-store sales, but there is an expectation for gradual improvement in store operations and profitability due to cost relief and industry consolidation [4][6] - In 2024, the company reported a revenue of 6.26 billion, a decrease of 13.8% year-on-year, and a net profit attributable to the parent company of 227 million, down 34.0% [4][6] - For Q1 2025, the company achieved a revenue of 1.5 billion, a decrease of 11.5% year-on-year, with a net profit of 120 million, down 27.3% [4][6] Financial Performance Summary - Revenue for 2024 is projected at 6.98 billion, with a year-on-year growth of 11.6% in 2025, and net profit expected to reach 632 million, reflecting a significant increase of 178.1% [7] - The gross margin for Q1 2025 is reported at 30.8%, an increase of 0.8 percentage points year-on-year, indicating improved cost management [6] - The company’s P/E ratios for 2025, 2026, and 2027 are projected at 15.4, 14.4, and 13.5 respectively, suggesting a favorable valuation compared to historical performance [7][9] Revenue Breakdown - In Q1 2025, revenue by product category includes 870 million from poultry, 80 million from livestock, 140 million from vegetables, and 190 million from packaged products, with notable growth in packaged products at 106.5% year-on-year [5] - Revenue by region shows significant declines in Southwest and Northwest regions, while East China experienced a slight growth of 4.1% [5] Cost and Profitability - The company’s sales expense ratio for Q1 2025 is 9.7%, reflecting an increase due to higher advertising costs, while the management expense ratio is 7.6% [6] - Investment losses in Q1 2025 were reduced to 4 million, indicating a recovery from previous losses [6]