Three Squirrels(SZ:300783) China Post Securities·2025-05-06 05:56Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within the next six months [8][14]. Core Views - The company reported Q1 2025 revenues of 3.723 billion yuan, with a net profit of 239 million yuan, reflecting a year-on-year revenue growth of 2.13% but a decline in net profit by 22.46% [5][6]. - The impact of the misalignment of the New Year festival affected quarterly profits, with a gross margin of 26.74% and a net profit margin of 6.42%, both showing slight declines compared to the previous year [6][8]. - The company is focusing on diversifying its product categories, reducing reliance on nuts, and enhancing its product mix with new offerings such as soft drinks and convenience foods [7][8]. Financial Performance Summary - For 2025, the company expects revenues to reach 13.847 billion yuan, with a year-on-year growth of 30.36%, and net profits projected at 485.2 million yuan, reflecting a growth of 19% [8][10]. - The earnings per share (EPS) for 2025 is estimated at 1.21 yuan, with a price-to-earnings (P/E) ratio of 22 times [8][10]. - The company’s total assets are projected to grow from 67.67 billion yuan in 2024 to 127.69 billion yuan by 2027, indicating a strong growth trajectory [10][13].