Shanghai Bolex Food Technology (603170) Huachuang Securities·2025-04-28 04:50Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 18.2 CNY [1][7]. Core Insights - The company reported a revenue of 2.651 billion CNY for 2024, reflecting a year-on-year growth of 11.91%. However, the net profit attributable to the parent company decreased by 22.52% to 233 million CNY. For Q1 2025, revenue was 669 million CNY, up 7.18% year-on-year, while net profit fell by 4.19% to 58 million CNY [1][3][7]. - The company is expected to continue its stable revenue growth, with a projected annual revenue increase of over 10% for 2025, driven by improvements in both B-end and C-end markets. The report highlights the potential for profit recovery in the coming quarters [7][8]. Financial Performance Summary - 2024 Financials: Total revenue reached 2,651 million CNY, with a net profit of 233 million CNY. The gross margin was 32.8%, a slight decrease of 0.3 percentage points year-on-year. The company maintained stable expense ratios across sales, management, and R&D [3][8]. - 2025 Projections: Expected revenue growth of 11.0% to 2,943 million CNY, with net profit projected to rise by 19.7% to 279 million CNY. The EPS is forecasted to be 0.70 CNY [3][7]. - Long-term Outlook: The company aims to transition from a restaurant supply chain to a food supply chain enterprise, which is anticipated to open new growth avenues in the future [7][8]. Revenue and Profit Trends - The company has shown resilience with a revenue growth of 12.6% in Q4 2024 and Q1 2025 combined. The breakdown indicates that revenue from the mixed seasoning segment grew by 13.2%, while the light cooking segment saw a growth of 10.4% [7][8]. - The report notes that the company’s net profit margin is expected to gradually improve throughout 2025, with a focus on enhancing operational efficiency and product innovation [7][8].