GF SECURITIES·2026-03-26 13:47Investment Rating - The report assigns a "Buy" rating to the company, with a current price of 12.74 HKD and a fair value of 14.64 HKD [8]. Core Insights - The company has shown continuous profit improvement, with a reported revenue of 79.07 billion RMB for 2025, a decrease of 2.0% year-on-year, while the net profit attributable to shareholders increased by 20.5% to 4.50 billion RMB [8]. - The company maintained a 100% dividend payout, reflecting its strong cash flow and commitment to returning value to shareholders [8]. - The second half of 2025 saw a narrowing decline in revenue, with the instant noodle business showing signs of recovery, particularly in high-priced products [8]. - The gross margin improved, with overall gross margin increasing by 1.7 percentage points to 34.8%, driven by cost benefits and product mix optimization [8]. - The report forecasts net profit growth for 2026-2028, with expected figures of 4.54 billion RMB, 4.89 billion RMB, and 5.24 billion RMB respectively, corresponding to a PE ratio of 14, 13, and 12 times [8]. Financial Summary - Revenue projections for 2024 to 2028 are as follows: 80.65 billion RMB (2024), 79.07 billion RMB (2025), 79.91 billion RMB (2026), 81.56 billion RMB (2027), and 83.32 billion RMB (2028) [4]. - The EBITDA is projected to grow from 9.47 billion RMB in 2024 to 11.10 billion RMB in 2028 [4]. - The return on equity (ROE) is expected to increase from 26.2% in 2024 to 35.0% in 2028 [4]. - The report highlights a decrease in employee count by 6.3% to 60,720, indicating ongoing operational efficiency improvements [8].