GANYUAN FOODS CO.(SZ:002991) EBSCN·2025-05-06 08:13Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company achieved a revenue of 2.257 billion yuan in 2024, representing a year-on-year growth of 22.18%, and a net profit attributable to shareholders of 376 million yuan, up 14.32% year-on-year [1]. - The company is implementing a product restructuring strategy in 2025, introducing a series of new products to drive growth [2]. - The company is actively expanding its overseas market presence, particularly in Southeast Asia, which is expected to contribute to revenue growth [2]. - The report notes a decline in gross margin due to fluctuations in raw material prices, particularly palm oil, impacting profitability [3]. - The company has adjusted its profit forecasts for 2025 and 2026, with net profit estimates lowered to 412 million yuan and 502 million yuan, respectively [4]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 2.257 billion yuan, with a net profit of 376 million yuan and a non-recurring net profit of 341 million yuan [1]. - For Q1 2025, the company recorded a revenue of 504 million yuan, down 13.99% year-on-year, and a net profit of 53 million yuan, down 42.21% year-on-year [1]. Product and Market Strategy - The revenue breakdown by product for 2024 shows significant growth in categories such as mixed nuts and beans, with a 39.80% increase [2]. - The company is shifting its distribution strategy from wholesale to direct sales in supermarkets, which is expected to enhance revenue from direct channels [2]. - The e-commerce team has been restructured, focusing on sustainable profitability rather than aggressive low-price sales [2]. Cost and Profitability - The gross margin for 2024 was reported at 35.46%, with a decline noted in Q1 2025 to 34.32% due to rising raw material costs [3]. - The selling expense ratio increased to 17.34% in Q1 2025, reflecting higher investments in sales personnel and marketing [3]. - The net profit margin for Q1 2025 was 10.47%, down from previous periods, indicating pressure on profitability [3]. Valuation and Forecast - The report projects earnings per share (EPS) of 4.42 yuan for 2025, with a price-to-earnings (P/E) ratio of 16 times based on the current stock price [4]. - The company is expected to maintain strong return on equity (ROE) levels, projected at 22.18% for 2025 [4].