ZHONGYIN BABI FOOD CO.(SH:605338) Huachuang Securities·2026-02-04 02:42Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [2][20]. Core Insights - The company achieved a total revenue of 1.859 billion in 2025, representing a year-on-year growth of 11.22%. However, the net profit attributable to shareholders decreased by 1.30% to 273 million, while the net profit excluding non-recurring items increased by 16.49% to 245 million [2][4]. - The report highlights that the company is accelerating its store openings, with a net increase of several hundred stores expected in 2025, driven by acquisitions and a new store model that shows replicability [2][8]. - The company is projected to continue its growth trajectory, with revenue expected to reach 2.515 billion by 2027, reflecting a compound annual growth rate (CAGR) of 20.7% from 2025 to 2027 [4][9]. Financial Performance Summary - For 2024, total revenue is forecasted at 1.671 billion, with a growth rate of 2.5%. By 2025, revenue is expected to rise to 1.861 billion, with a growth rate of 11.4% [4][9]. - The net profit attributable to shareholders is projected to be 273 million in 2025, with an expected growth of 18.5% to 324 million in 2026, and further to 407 million in 2027, indicating a strong recovery and growth potential [4][9]. - The earnings per share (EPS) is estimated to be 1.14 yuan in 2025, with projections of 1.35 yuan in 2026 and 1.70 yuan in 2027, reflecting a positive trend in profitability [4][9]. Market Position and Strategy - The company is positioned as a leader in the frozen food sector, with a focus on enhancing operational efficiency and innovation. The report emphasizes the potential for significant growth through the expansion of its new store model [2][8]. - The company plans to leverage its brand strength and operational improvements to achieve a substantial increase in store openings, aiming for a total of 1,500 to 2,000 stores in the medium term [2][8].