Anjoy food(SH:603345) HTSC·2025-10-29 05:09Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 101.64 [6][4]. Core Views - The frozen food sector is expected to continue its recovery after bottoming out, with the company showing resilience in revenue and profit margins despite a competitive environment [1][4]. - The company is focusing on strategic products like fresh-keeping packaging and grilled sausages, which are driving sales growth [2][3]. Summary by Sections Financial Performance - For Q1-3 2025, the company reported revenue of RMB 1.137 billion, a year-on-year increase of 2.7%, while net profit attributable to the parent company decreased by 9.3% to RMB 95 million [1]. - In Q3 2025, revenue reached RMB 377 million, up 6.6% year-on-year, with net profit increasing by 11.8% to RMB 27 million [1]. - The gross margin for Q3 2025 was 20.0%, a slight increase of 0.1 percentage points year-on-year, while the net profit margin improved to 7.3% [3]. Product and Channel Performance - The company’s main products, including frozen hot pot ingredients and rice noodles, showed improved performance in September 2025 compared to July and August [1]. - The sales of the company’s fresh-keeping packaging products grew faster than the overall business, and the small lobster business also showed positive revenue growth in Q3 2025 [2]. Profitability and Cost Management - The company managed to maintain a stable gross margin despite rising costs for fresh fish and small lobsters, with most raw material prices declining year-on-year [3]. - The sales expense ratio decreased by 0.3 percentage points to 6.1%, indicating effective cost control measures [3]. Earnings Forecast and Valuation - Revenue forecasts for 2025-2027 have been slightly lowered to RMB 15.83 billion, RMB 16.67 billion, and RMB 17.22 billion, respectively, while EPS estimates have been adjusted upwards to RMB 4.20, RMB 4.62, and RMB 4.91 [4][10]. - The target price of RMB 101.64 corresponds to a 22x PE ratio for 2026, reflecting a positive outlook for the company’s profitability [4].