Ligao Foods (SZ:300973) HTSC·2025-04-29 04:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of 48.79 RMB [7][8]. Core Insights - The company's revenue and net profit for 2024 are projected to be 384 million and 27 million RMB, respectively, reflecting year-on-year growth of 9.6% and 266.9% [1]. - In Q1 2025, the company reported revenue and net profit of 105 million and 9 million RMB, respectively, showing year-on-year growth of 14.1% and 15.1%, exceeding previous expectations [1]. - The company's effective cost control measures have successfully mitigated pressure on gross margins, contributing to improved profitability [1][3]. Revenue and Profitability - The company's revenue from frozen baked goods in Q1 2025 grew approximately 12% year-on-year, while cream products continued to show strong growth [2]. - The gross margin for 2024 increased by 0.1 percentage points to 31.5%, with a notable reduction in share-based payment expenses and improved operational efficiency [3]. - The net profit margin for 2024 increased by 4.9 percentage points to 7.0%, indicating a significant enhancement in profitability [3]. Financial Projections - The report forecasts revenues of 4.461 billion RMB and net profits of 330 million RMB for 2025, with EPS projected at 1.95 RMB [4][6]. - The company is expected to maintain a steady growth trajectory, with revenue growth rates projected at 16.3% for 2025 and 12.9% for 2026 [6]. - The report introduces an EPS forecast for 2027 at 2.60 RMB, reflecting continued growth potential [4]. Market Position and Strategy - The company has successfully launched new products that have contributed positively to revenue growth, particularly in the Sam's Club channel [1][2]. - The sales strategy and product development are aligned with production lines, ensuring more precise and effective allocation of expenses [1]. - The company is expected to continue its operational recovery, supported by strong market demand and effective management practices [4].