Hengshun Vinegar(SH:600305) Huachuang Securities·2025-08-26 02:49Investment Rating - The report maintains a "Recommendation" rating for the company, with a target price of 8.8 yuan [2][8]. Core Views - The company reported a total revenue of 1.12 billion yuan for H1 2025, representing a year-on-year increase of 12.0%, and a net profit attributable to shareholders of 110 million yuan, up 18.1% year-on-year. In Q2 alone, revenue was 500 million yuan, down 8.2% quarter-on-quarter, but net profit increased by 40.6% year-on-year to 50 million yuan [2][8]. - The company is expected to benefit from ongoing reforms aimed at enhancing operational efficiency and accelerating growth, particularly under new leadership [2][8]. Financial Performance Summary - Revenue Forecasts: Projected total revenue for 2024A is 2.196 billion yuan, with expected growth rates of 4.2% in 2024, 4.1% in 2025, 7.3% in 2026, and 6.6% in 2027 [4][8]. - Net Profit Forecasts: The net profit attributable to shareholders is forecasted to be 127 million yuan in 2024A, with growth rates of 46.5% in 2024, 39.1% in 2025, 10.5% in 2026, and 17.8% in 2027 [4][8]. - Earnings Per Share (EPS): EPS is projected to be 0.12 yuan in 2024, increasing to 0.21 yuan by 2027 [4][8]. - Valuation Ratios: The price-to-earnings (P/E) ratio is expected to decrease from 72 times in 2024 to 39 times in 2027, while the price-to-book (P/B) ratio remains stable around 2.7 times [4][8]. Operational Insights - The company is focusing on enhancing its core competencies, including brand promotion, product system improvement, and capacity release. It is also working on marketing model reforms and optimizing expenditure strategies [2][8]. - The company experienced a decline in revenue in Q2 due to weak external demand and high comparison base from the previous year, with specific product categories showing varying performance [2][8].