Huangshanghuang(SZ:002695) Great Wall Securities·2025-08-14 07:15Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [3][20]. Core Views - The company is acquiring a leading domestic freeze-dried food manufacturer, which is expected to create a second growth curve and enhance its position in the health food market [1][2][11]. - The acquisition is projected to significantly improve the company's financial performance, with expected revenue growth and profitability in the coming years [11]. Financial Summary - Revenue Forecast: The company anticipates revenues of 1,921 million RMB in 2023, decreasing to 1,739 million RMB in 2024, and then increasing to 1,959 million RMB in 2025, with a growth rate of 12.6% [1][11]. - Net Profit: The net profit is expected to rise from 71 million RMB in 2023 to 88 million RMB in 2025, reflecting a year-on-year growth of 118.4% [1][11]. - Return on Equity (ROE): The ROE is projected to improve from 2.4% in 2023 to 3.2% in 2025 [1][11]. - Earnings Per Share (EPS): The EPS is forecasted to increase from 0.13 RMB in 2023 to 0.16 RMB in 2025 [1][11]. - Price-to-Earnings (P/E) Ratio: The P/E ratio is expected to decrease from 113.7 in 2023 to 91.1 in 2025 [1][11]. Acquisition Details - The company plans to acquire 51% of the shares of Fujian Lixing Food Co., Ltd. for 49,470,000 RMB, which will make Lixing a subsidiary and included in the consolidated financial statements [1][2]. - The acquired company has committed to achieving a net profit of no less than 75 million RMB, 89 million RMB, and 100 million RMB for the years 2025 to 2027, respectively [2][11]. Market Position and Growth Potential - The freeze-dried food market is projected to grow significantly, with the global market expected to reach 5.2 billion USD by 2030, and the Chinese market anticipated to grow to 8.8 billion RMB by 2030 [12]. - The company is well-positioned to benefit from trends such as the aging population and single-person households, with innovative products targeting health-conscious consumers [10][11].