Guangzhou Restaurant(SH:603043) Changjiang Securities·2025-05-09 05:15Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Views - In Q1 2025, the company achieved operating revenue of 1.046 billion yuan, a year-on-year increase of 3.34%, while the net profit attributable to the parent company decreased by 29.86% to 47 million yuan [2][6]. - The company is focused on a strategy of "strong brand in catering, large-scale in food," aiming to build a "big catering, big food, big brand" industrial structure, with plans for new store openings and market expansion nationwide [2][12]. - The company expects net profits attributable to the parent company to be 561 million, 634 million, and 690 million yuan for 2025, 2026, and 2027 respectively, corresponding to PE ratios of 16, 14, and 13 times at the current stock price [2][12]. Summary by Sections Business Performance - The food manufacturing segment showed mixed results, with revenue growth of 0.11% year-on-year. The mooncake series saw a decline of 19.25%, while frozen foods decreased by 3.33%. Other products grew by 4.09%. The catering service business, however, grew by 10.1% year-on-year [12]. - The overall main business revenue increased by 3.76% year-on-year, with direct sales revenue up by 4.28%, while agency and distribution revenue declined by 1.85% [12]. Regional Performance - The company’s food manufacturing business has seen effective expansion outside Guangdong province, with a net decrease of 18 distributors and agents, while the number in Guangdong increased by 37 [12]. Profitability - The gross margin decreased by 4.45 percentage points to 25.36%, while the expense ratio fell by 1.04 percentage points to 18.3%, marking the lowest level for the first quarter in history [12]. - The net profit margin decreased by 2.01 percentage points to 5.95%, a smaller decline compared to the gross margin [12]. Future Outlook - The company is optimistic about its stock option and restricted stock incentive plan, which aims to attract and retain talented management and business personnel, promoting stable development [12]. - The long-term goal is to create a century-old famous brand and build an internationally renowned food group [12].