Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.17 HKD [7][8]. Core Insights - The company reported a net profit of 600 million RMB in Q1 2025, representing a year-on-year increase of 32%, indicating strong profit performance [1]. - The overall revenue for Q1 2025 grew at a low double-digit rate, with the beverage segment also showing low double-digit growth and the food segment achieving high single-digit growth [2]. - The gross margin for Q1 2025 increased by 0.5 percentage points year-on-year, driven by a decline in raw material prices, particularly in the beverage segment [3]. - The company aims for a revenue growth guidance of 6%-8% for 2025, with potential to increase to 8%-12% if internal management exceeds expectations [2]. Summary by Sections Financial Performance - Q1 2025 net profit was 600 million RMB, up 32% year-on-year, with overall revenue growth at a low double-digit rate [1]. - Beverage revenue showed low double-digit growth, while food revenue achieved high single-digit growth [2]. - The gross margin for Q1 2025 was up 0.5 percentage points year-on-year, with beverage gross margin increasing by approximately 2.0 percentage points [3]. Profitability and Cost Management - The company experienced a decrease in sales expense ratio by over 0.5 percentage points year-on-year due to scale effects and precise marketing investments [3]. - The report anticipates continued improvement in profit margins for 2025, supported by manageable cost fluctuations and operational efficiencies [4]. Dividend and Valuation - The company is expected to maintain a 100% dividend payout ratio for the next 2-3 years, with a projected EPS of 0.52, 0.58, and 0.62 RMB for 2025, 2026, and 2027 respectively [4][6]. - The target price of 11.17 HKD corresponds to a PE ratio of 20x for 2025, reflecting an increase from the previous target of 10.43 HKD [4].
统一企业中国（00220）：Q1利润表现亮眼，期待盈利持续释放