CHACHA FOOD CO.,LTD(SZ:002557) Haitong Securities·2024-02-28 16:00Investment Rating - The report maintains an "Outperform the Market" rating for the company [3][17]. Core Views - The company is expected to experience a recovery in revenue and profit in 2024, with a projected revenue of 75.12 billion yuan and a net profit of 10.36 billion yuan [3][30]. - The company faced revenue and profit pressure in 2023 due to the impact of rising raw material prices and the timing of the Spring Festival [2][12]. - The company’s net profit margin for 2023 is projected to be 11.83%, a decrease of 2.35 percentage points compared to 2022 [12]. Financial Performance Summary - The company’s revenue for 2023 is estimated at 68.10 billion yuan, with a net profit of 8.02 billion yuan, reflecting a year-over-year decline of 17.50% [29]. - The earnings per share (EPS) for 2023 is expected to be 1.58 yuan, with projections of 2.04 yuan and 2.38 yuan for 2024 and 2025 respectively [3][31]. - The company’s gross margin is expected to recover to 31.1% in 2024, up from 29.0% in 2023 [31]. Market Position and Strategy - The company has been focusing on channel development and expanding its market presence, particularly in the snack segment, which is expected to contribute to revenue growth in 2024 [22]. - The company is enhancing its penetration in e-commerce channels and exploring overseas markets, particularly in Southeast Asia [22]. Valuation Metrics - The report suggests a price-to-earnings (P/E) valuation range of 20-25 times for 2024, indicating a reasonable value range of 40.80 to 51.00 yuan per share [3][19].