Sanquan Food (SZ:002216) Guoxin Securities·2025-08-27 02:20Investment Rating - The investment rating for the company is Neutral, maintained from previous assessments [5][15][17]. Core Views - The company reported a total revenue of 3.568 billion yuan for the first half of 2025, a year-on-year decrease of 2.66%. The net profit attributable to shareholders was 313 million yuan, down 5.98% year-on-year [1][8]. - The company is facing pressure in both B and C-end sales, with revenues of 2.9 billion yuan and 600 million yuan respectively, reflecting declines of 1.5% and 8.8% year-on-year. The overall demand in the frozen food industry remains weak [10][12]. - The company is focusing on quality, health, and personalized needs by upgrading its differentiated product matrix and expanding its channels, including launching new products like grilled sausages and meatballs [10][12]. Summary by Sections Financial Performance - In the first half of 2025, the company's gross margin was 22.7%, a decrease of 2.2 percentage points year-on-year, primarily due to increased promotional efforts and changes in product structure [2][10]. - The company’s sales expense ratio and management expense ratio for Q2 2025 were 12.7% and 4.9%, respectively, with the sales expense ratio decreasing by 0.3 percentage points year-on-year [2][10]. Organizational and Channel Reforms - The company is advancing organizational and channel reforms by establishing a meat product division as a second growth curve and creating a new department for managing and servicing distributors [2][12]. - The number of distributors decreased by 740 to 3,455 in the first half of 2025, indicating a continuous optimization of the distributor structure [2][12]. Revenue and Profit Forecasts - The revenue forecasts for 2025-2027 have been adjusted to 6.683 billion, 7.068 billion, and 7.391 billion yuan, respectively, with year-on-year growth rates of 0.8%, 5.8%, and 4.6% [3][15]. - The net profit forecasts for the same period are 531 million, 561 million, and 559 million yuan, with year-on-year changes of -2.1%, 5.7%, and -0.4% [3][15].