Shanghai Ziyan Foods (SH:603057) Guoyuan Securities·2025-08-27 11:42Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits of 233.41 million, 299.42 million, and 334.39 million for 2025, 2026, and 2027 respectively, reflecting growth rates of -32.63%, 28.28%, and 11.68% [5]. Core Insights - The company reported a total revenue of 1.473 billion in the first half of 2025, a decrease of 11.46% year-on-year, with a net profit of 105 million, down 47.20% [1]. - In Q2 2025, total revenue was 909 million, a decline of 6.16%, with a net profit of 89 million, down 37.99% [1]. - The company is actively expanding its overseas market presence, particularly in North America, with new store openings in New York and New Jersey [3][4]. Summary by Sections Revenue Performance - In H1 2025, revenue from fresh products, pre-packaged products, and other categories were 1.129 billion, 248 million, and 30 million respectively, showing year-on-year changes of -18.52%, +40.98%, and -10.03% [2]. - Q2 2025 saw fresh product revenue decline by 17.11%, while pre-packaged products grew by 87.84% [2]. Distributor and Channel Performance - The company added 2 new distributors in Q2 2025, maintaining a total of 100 distributors [3]. - Direct store revenue grew significantly, aided by a strategy combining penetration into Chinese supermarkets and direct store openings in North America [3]. Profitability Analysis - The gross profit margin for H1 2025 was 22.24%, down 2.55 percentage points year-on-year, primarily due to rising labor costs [4]. - The net profit margin for H1 2025 was 7.10%, a decrease of 4.81 percentage points year-on-year [4]. Financial Forecast - The company is projected to have a PE ratio of 45, 35, and 32 for the years 2025, 2026, and 2027 respectively, with a market capitalization of 10.5 billion [5].