Juewei Food (SH:603517) Tianfeng Securities·2025-04-20 07:15Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7][19]. Core Views - The company experienced a decline in revenue and net profit in 2024, with revenue of 6.26 billion and net profit of 227 million, representing a year-on-year decrease of 13.84% and 34.04% respectively [1]. - The company is expected to improve its same-store sales in the long term, which may lead to an increase in market share [5]. Financial Performance Summary - In Q1 2025, the company reported revenue of 1.50 billion and a net profit of 120 million, showing a year-on-year decline of 11.47% and 27.29% respectively [1]. - The sales of marinated products, franchise management, and other revenue streams showed varying performance, with marinated product sales declining by 14% [2]. - The company's gross margin improved to 30.80% in Q1 2025, while the net margin decreased to 7.68% due to increased expenses [4]. Regional Performance Summary - Revenue from major regions declined, with significant drops in the Southwest and Northwest regions, showing a year-on-year decrease of 45% and 12% respectively in Q1 2025 [3]. - Online revenue saw a drastic decline of 52% in 2024, contributing only 0.82% to total revenue [3]. Cost and Profitability Summary - The company’s gross margin increased by 0.77 percentage points in Q1 2025, attributed to lower raw material costs, while net margin faced pressure from rising expenses [4]. - The company reported an investment loss of 160 million in 2024, primarily due to profit fluctuations in invested enterprises [4]. Financial Forecast Summary - The revenue forecast for 2025-2027 is adjusted to 5.93 billion, 6.10 billion, and 6.46 billion respectively, with expected year-on-year growth rates of -5%, +3%, and +6% [5]. - The projected net profit for the same period is 490 million, 568 million, and 644 million, with significant growth anticipated in 2025 [5].