Fuling Zhacai(SZ:002507) KAIYUAN SECURITIES·2025-10-27 10:42Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported steady revenue growth and stable profitability for Q3 2025, with revenue and net profit for Q1-Q3 reaching 2.0 billion and 670 million yuan, respectively, reflecting year-on-year increases of 1.8% and 0.3% [4][6] - The company is expected to achieve net profits of 830 million, 900 million, and 970 million yuan for 2025-2027, representing year-on-year growth of 3.7%, 8.8%, and 7.6% respectively [4][6] - The current stock price corresponds to P/E ratios of 17.9, 16.4, and 15.3 for 2025-2027, indicating a favorable valuation considering the company's expansion into new businesses and products [4][6] Revenue and Profitability - For Q3 2025, the company achieved revenue and net profit of 690 million and 230 million yuan, respectively, with year-on-year growth of 4.5% and 4.3% [4][6] - The gross margin for Q1-Q3 increased by 1.10 percentage points to 53.73%, while the net margin decreased by 0.51 percentage points to 33.67% [6] - The company’s investment income significantly increased to 41.12 million yuan in Q3 2025, compared to 5.61 million yuan in the same period last year [6] Product and Market Strategy - The company maintains a steady growth trend in revenue, primarily driven by the stable growth of its pickled vegetable category, with a multi-price and multi-specification strategy [5][7] - The company is actively expanding new channels, including partnerships with major supermarkets and embracing emerging e-commerce platforms like Douyin [7] Financial Summary and Valuation Metrics - The company’s projected revenue for 2025 is 2.509 billion yuan, with a year-on-year growth of 5.1% [9] - The projected gross margin for 2025 is 51.3%, with a net margin of 33.1% [9] - The company’s return on equity (ROE) is expected to be 9.2% for 2025, with earnings per share (EPS) projected at 0.72 yuan [9][11]