Hengshun Vinegar(SH:600305) Changjiang Securities·2025-04-28 04:45Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a total revenue of 2.196 billion yuan for 2024, representing a year-on-year increase of 4.25%. The net profit attributable to shareholders was 127 million yuan, up 46.54% year-on-year, while the net profit excluding non-recurring items was 113 million yuan, an increase of 48.30% year-on-year [2][4] Revenue Analysis - In Q4 2024, the company achieved a total revenue of 665 million yuan, a year-on-year increase of 41.87%. The net profit attributable to shareholders was 7.2028 million yuan, marking a turnaround from losses, and the net profit excluding non-recurring items was 7.8066 million yuan, also indicating a turnaround [4][5] - Revenue breakdown by product for 2024 shows that the vinegar series generated 1.266 billion yuan (down 2.20% year-on-year, but up 9.45% in Q4), the wine series generated 329 million yuan (up 0.47% year-on-year, down 5.91% in Q4), and the sauce series generated 180 million yuan (down 8.07% year-on-year, down 1.08% in Q4) [5] - Revenue by region indicates that East China generated 1.053 billion yuan (down 1.89% year-on-year), South China 354 million yuan (up 5.36%), Central China 355 million yuan (up 5.08%), Western China 210 million yuan (up 6.50%), and North China 122 million yuan (down 9.25%) [5] Profitability and Cost Management - The overall gross margin for 2024 was 34.7%, an increase of 1.74 percentage points year-on-year. The gross margin for the vinegar series was 45.31% (up 2.21 percentage points), for the wine series was 31.10% (up 5.47 percentage points), and for the sauce series was 10.58% (down 0.57 percentage points) [6] - The net profit margin attributable to shareholders increased to 5.80% (up 1.67 percentage points year-on-year), while the net profit margin excluding non-recurring items rose to 5.17% (up 1.54 percentage points) [6] Future Growth Potential - The company is deepening state-owned enterprise reforms, implementing employee stock ownership plans, and enhancing market-oriented compensation and performance systems, which have effectively motivated employees, especially in the marketing team [7] - New production capacity from projects such as the 100,000-ton yellow wine and cooking wine expansion and the 100,000-ton seasoning intelligent production project has been put into operation in 2024, providing a solid foundation for future growth [7] - The company is expected to focus on its core products of vinegar, wine, and sauce, launching cost-effective new products and expanding into B-end channels such as restaurants and community stores to drive sales growth. EPS is projected to be 0.13 billion yuan and 0.16 billion yuan for 2025 and 2026, respectively, with corresponding P/E ratios of 62 and 49 times [7]