Fuling Zhacai(002507) 光大证券·2025-04-27 11:14Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company reported a revenue of 710 million yuan in Q1 2025, a year-on-year decrease of 4.8%, while the net profit attributable to shareholders was 270 million yuan, a slight increase of 0.2% year-on-year [1]. - The decline in raw material prices has positively impacted the company's gross margin, which reached 55.96% in Q1 2025, an increase of 3.85 percentage points year-on-year [2]. - The company is focusing on enhancing its e-commerce and catering channels, with plans for strategic resource allocation to support growth in these areas [3]. Summary by Sections Financial Performance - Q1 2025 gross margin was 55.96%, up 3.85 percentage points year-on-year, driven by lower vegetable head purchase prices [2]. - The net profit margin for Q1 2025 was 38.19%, reflecting a year-on-year increase of 1.9 percentage points [2]. - The company forecasts net profits of 878 million yuan, 939 million yuan, and 991 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.76, 0.81, and 0.86 yuan [4]. Strategic Initiatives - The company plans to strengthen its e-commerce and catering channels, with a focus on product offerings and promotional strategies [3]. - A significant acquisition is underway, with the company proposing to acquire 51% of Sichuan Weizimei Food Technology Co., Ltd., which had a revenue of 265 million yuan and a net profit of 39.62 million yuan in 2024 [3]. Valuation Metrics - The current stock price of 13.53 yuan corresponds to a PE ratio of 18x for 2025, 17x for 2026, and 16x for 2027 [4].