GUOTAI HAITONG SECURITIES·2026-04-01 04:45Investment Rating - The investment rating for the company is "Accumulate" [5][11]. Core Views - The company is expected to perform well in Q4 2025, with a positive outlook for future growth driven by a new product cycle [2][11]. - The company is a leader in the frozen food sector, with significant competitive advantages, and is assigned a valuation premium [11]. - The report anticipates a steady increase in revenue and net profit over the next few years, with projected EPS of 5.13, 5.94, and 6.64 yuan for 2026, 2027, and 2028 respectively [11]. Financial Summary - Total revenue is projected to reach 15,127 million yuan in 2024, increasing to 22,178 million yuan by 2028, reflecting a CAGR of approximately 11.1% [4]. - Net profit attributable to the parent company is expected to be 1,485 million yuan in 2024, with a forecasted increase to 2,212 million yuan by 2028 [4]. - The company’s net profit margin is projected to improve from 10.0% in 2024 to 10.1% in 2028 [12]. Revenue Growth - In Q4 2025, the company reported revenue of 48.22 billion yuan, a year-on-year increase of 19.05% [11]. - Key product categories showed significant growth, with revenue from prepared foods increasing by 25.77% year-on-year [11]. - The company is shifting from channel-driven to product-driven strategies, focusing on innovation and quality to enhance competitiveness [11]. Market Position - The company has a total market capitalization of 31,083 million yuan, with a current share price of 93.26 yuan and a target price of 128.25 yuan [5][11]. - The stock has shown a 52-week price range of 69.83 to 96.90 yuan, indicating a strong performance relative to the market [5]. Financial Ratios - The company’s return on equity (ROE) is projected to improve from 11.5% in 2024 to 12.8% in 2028 [4][12]. - The price-to-earnings (P/E) ratio is expected to decrease from 20.20 in 2024 to 13.56 in 2028, indicating a potential undervaluation [4][12].