Juewei Food (SH:603517) Huaxin Securities·2024-02-21 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [4]. Core Views - The company is facing significant pressure on its fundamentals due to the gradual recovery of the external economic environment and the optional nature of its leisure snack products. However, as an industry leader, it possesses notable advantages in brand, channel, and product strength. The company's efficient supply chain management, developed through years of expansion into upstream and downstream sectors, helps it withstand short-term fluctuations in the external economic environment. The decline in raw material costs has provided the company with more flexibility, and it has successfully attracted customers through content marketing and discounts on platforms like Douyin and Kuaishou. The planned share buyback reflects the company's confidence in its future development [5]. Financial Forecasts - The company’s earnings per share (EPS) are projected to be 0.92, 1.52, and 1.84 yuan for 2023, 2024, and 2025 respectively, with corresponding price-to-earnings (P/E) ratios of 24, 15, and 12 times [5]. - The main revenue is expected to grow from 6,623 million yuan in 2022 to 9,239 million yuan in 2025, reflecting a growth rate of 12.5% in 2025 [36]. - The net profit attributable to shareholders is forecasted to increase from 233 million yuan in 2022 to 1,137 million yuan in 2025, with a significant growth rate of 20.5% in 2025 [36]. Share Buyback Announcement - The company announced a plan to repurchase shares worth no less than 200 million yuan and no more than 300 million yuan, with a maximum repurchase price of 35 yuan per share. As of February 21, 2024, the company's closing price was 22.05 yuan per share. The company has sufficient liquidity, with total current assets of 2.867 billion yuan and cash and cash equivalents of 712 million yuan, indicating that the buyback will not impact its daily operations [33].