QIANHE(SH:603027) GUOTAI HAITONG SECURITIES·2025-08-29 06:17Investment Rating - The report maintains an "Accumulate" rating for the company [3][11] - The target price is set at 14.04 CNY [3][11] Core Insights - The company experienced a significant decline in revenue and net profit in Q2 2025, with revenue dropping by 17.07% year-on-year to 1.318 billion CNY and net profit decreasing by 30.81% to 173 million CNY [11] - The sales expense ratio increased, leading to a decline in profitability, with a net profit margin of 13.16%, down 2.61 percentage points year-on-year [11] - The company’s gross margin improved slightly to 36.58%, attributed to lower prices of key raw materials [11] Financial Performance Summary - For H1 2025, the company reported a revenue of 1.318 billion CNY, down 17.07% year-on-year, and a net profit of 173 million CNY, down 30.81% year-on-year [11] - The Q2 2025 single-quarter revenue was 487 million CNY, a decline of 29.86% year-on-year, with net profit at 13 million CNY, down 86.66% year-on-year [11] - The company’s soy sauce and vinegar revenues fell by 16% and 22% respectively in H1 2025, with a notable 23.71% decline in the western region [11] Financial Forecast - The company’s earnings per share (EPS) estimates for 2025-2027 are adjusted to 0.37 CNY, 0.58 CNY, and 0.64 CNY, reflecting a year-on-year decrease of 25.3% in 2025, followed by increases of 54.1% and 11.4% in subsequent years [11] - The projected revenue for 2025 is 2.764 billion CNY, with a forecasted growth to 3.139 billion CNY in 2026 and 3.462 billion CNY in 2027 [10][12]