Ligao Foods (SZ:300973) EBSCN·2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [6][16]. Core Views - The company has shown steady performance during the Spring Festival, with strong growth in various channels, particularly in the bakery segment, driven by the increase in cream sales and the recovery of traditional bakery stores [6]. - The company is expected to maintain a revenue growth rate above the average level of the baking industry due to its diversified channels and strong product offerings [6]. - The company is implementing cost reduction and efficiency improvement measures, which are anticipated to enhance profit margins [6]. - The long-term performance of the company is supported by its channel diversification and focus on cost-effectiveness, exemplified by its competitive pricing strategy [6]. Financial Forecasts and Valuation - The company’s projected net profits for 2023-2025 are 104 million, 288 million, and 409 million yuan respectively, with corresponding P/E ratios of 57, 21, and 15 [6][7]. - Revenue is expected to grow from 3,554 million yuan in 2023 to 5,154 million yuan in 2025, reflecting a compound annual growth rate [7]. - The report highlights a significant recovery in profit margins, with expectations for net profit margins to return to normal levels as cost control measures take effect [6].