Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][11]. Core Views - The introduction of new products is expected to drive revenue growth and optimize the company's structure, alongside channel expansion and supply chain strengthening, indicating further release of growth potential [2]. - The company is positioned as a leading player in the spicy snack segment, with significant growth in its vegetable product line, which achieved a CAGR of 54.4% from 2018 to 2022 [2][17]. - The company has successfully launched differentiated new products in 2023, receiving positive market feedback, which is anticipated to become a new driver for revenue growth [2][12]. Summary by Sections Earnings Forecast and Investment Advice - The company is expected to achieve EPS of 0.40, 0.49, and 0.59 RMB for 2023-2025, reflecting year-on-year growth of +523.3%, +22.0%, and +20.6% respectively [2][11]. - The target price is set at 7.84 RMB, equivalent to 8.52 HKD, based on FCFF and PE valuation methods [2][11]. Company Overview - Established in 2001, the company has become a leader in the spicy snack food sector, primarily targeting consumers under 35 years old [17]. - The company has a strong market share in both the seasoning noodle products and spicy vegetable snacks categories [17]. Product and Channel Expansion - The company is expanding its product matrix by introducing new products and exploring new categories, which is expected to drive growth [2][12]. - The sales strategy has shifted from reliance on traditional channels to a diversified approach, enhancing coverage and efficiency through modern channels and online platforms [2][12]. Brand and Supply Chain Strengthening - The company emphasizes brand building and has invested in brand marketing, aiming for a high-quality, youthful brand positioning [2][12]. - Continuous investment in production capacity and supply chain optimization is expected to enhance operational efficiency [2][12]. Financial Performance - The company’s revenue is projected to grow from 49.38 billion RMB in 2023 to 64.19 billion RMB in 2025, with year-on-year growth rates of +6.6%, +13.9%, and +14.1% respectively [12][13]. - The gross margin is expected to improve, reaching 46.0% by 2025, driven by price increases and product structure optimization [13][26].
辣味龙头，推新加速