YKA(SZ:300999) HTSC·2025-04-30 08:09Investment Rating - The report maintains an "Overweight" rating for the company with a target price of 37.00 RMB [5][6]. Core Views - The company reported a Q1 2025 revenue of 59.079 billion RMB, representing a year-over-year increase of 3.15% and a quarter-over-quarter decrease of 6.83%. The net profit attributable to the parent company was 0.981 billion RMB, up 11.23% year-over-year and down 8.35% quarter-over-quarter. The non-recurring net profit was 0.862 billion RMB, showing a significant year-over-year increase of 253.91% [1][2]. - The improvement in gross margin is attributed to low raw material prices and the company's ongoing efforts in channel expansion and product innovation. The report expresses optimism about the company's earnings elasticity in 2025 [1][3]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin improvement of 1.69 percentage points year-over-year and 0.18 percentage points quarter-over-quarter. The kitchen food segment saw sales growth due to deepening sales channels, while the feed and oil technology segments maintained sales growth with stable prices [2][3]. - The company is expected to achieve net profits of 4.011 billion RMB, 6.677 billion RMB, and 8.411 billion RMB for the years 2025, 2026, and 2027, respectively, with corresponding growth rates of 60.30%, 66.47%, and 25.98% [4][9]. Market Outlook - The report highlights the company's focus on operational improvements and product innovation, including the introduction of new products like rice oil and germ oil. It anticipates that the combination of low raw material costs and improved downstream demand will enhance the company's earnings elasticity in 2025 [3][4]. Valuation - The report maintains the earnings forecast and estimates the company's EPS for 2025, 2026, and 2027 to be 0.74 RMB, 1.23 RMB, and 1.55 RMB, respectively. The target price is set at 37.00 RMB, based on a 50x PE ratio for 2025 [4][6].