GUOTAI HAITONG SECURITIES·2025-06-26 11:55Investment Rating - The report maintains a "Buy" rating for China Wangwang (0151) [2][6] Core Views - The company's FY24 profitability continues to expand, with internal organizational reforms initiated in the second half of the fiscal year to enhance channel development, particularly in emerging and overseas markets [2][6] - The revenue for FY24 is projected to decrease by 1.7% year-on-year, primarily due to declines in ice cream and rice snacks, while gross profit margin is expected to increase by 0.99 percentage points due to lower costs of raw materials and packaging [6][5] - The net profit for FY24 is forecasted to grow by 8.6% year-on-year, with a net profit margin increase of 1.52 percentage points to 18.41% [6][5] Financial Summary - Revenue (in million RMB): FY2022: 23,327.17, FY2023: 23,924.37, FY2024: 23,510.74 [5] - Gross Profit (in million RMB): FY2022: 10,071.03, FY2023: 10,990.92, FY2024: 11,189.20 [5] - Net Profit (in million RMB): FY2022: 3,371.58, FY2023: 3,990.47, FY2024: 4,335.57 [5] - The company’s PE ratio is projected to be 13.35 for FY2024 and decrease to 12.08 by FY2027 [5][6] - The target price is set at HKD 7.02 per share, equivalent to RMB 7.71 per share based on the exchange rate of 0.91 [6] Product Performance - Dairy beverage revenue is expected to grow by 1.3% year-on-year, with a gross margin increase of 1.2 percentage points [6] - Rice snacks revenue is projected to decline by 1.2% year-on-year, with a gross margin decrease of 1.9 percentage points [6] - Ice cream revenue showed a decline in the first half of FY24 but is expected to achieve rapid growth in the second half [6] Organizational Changes - The company has initiated internal organizational reforms in FY24, establishing product-based divisions to enhance channel collaboration and manage domestic and international operations [6] - Emerging channels are expected to grow at a double-digit rate, contributing significantly to revenue [6]