Fuling Zhacai(002507) 国盛证券·2025-04-26 09:32Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 713 million yuan in Q1 2025, a year-on-year decrease of 4.75%, while the net profit attributable to shareholders was 272 million yuan, a slight increase of 0.24% [1] - The company benefits from cost advantages due to a significant drop in the price of raw materials, specifically a 31% decrease in the purchase price of the main ingredient, green radish [1] - The company is pursuing a dual strategy of organic growth and external acquisitions, with plans to acquire a 51% stake in Sichuan Weizimei Food Technology Co., which specializes in compound seasonings and prepared dishes [2][3] - The integration of Weizimei is expected to enhance the company's product offerings and distribution channels, contributing to its long-term growth strategy [2][3] Financial Summary - The company's gross margin for Q1 2025 was 55.96%, an increase of 3.85 percentage points year-on-year, attributed to cost reductions from lower raw material prices [1] - The report forecasts net profits for 2025-2027 to grow by 8.5%, 8.2%, and 7.9% respectively, reaching 870 million, 940 million, and 1.01 billion yuan [3] - The projected revenue for 2025 is 2.579 billion yuan, reflecting an 8% year-on-year growth [4] - The earnings per share (EPS) is expected to increase from 0.75 yuan in 2025 to 0.88 yuan by 2027 [4]