Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of 5.72 CNY based on a 2024 PE of 22 times [3]. Core Views - The domestic egg liquid industry is experiencing significant growth potential, driven by a recovery in consumer demand and an increasing reliance on egg products in the baking and catering sectors. The processing ratio of eggs in China is currently only 5.0%-7.0%, indicating substantial room for expansion [2][17]. - The company has a strong market position with a leading share in the domestic egg product industry, and it has established stable partnerships with well-known downstream clients. The introduction of innovative products, such as the new egg white beverage, enhances its competitive edge [3][18]. - The company is expected to achieve a compound annual growth rate (CAGR) of 25.1% in net profit from 2023 to 2025, with projected net profits of 43.2 million CNY, 53.3 million CNY, and 70.1 million CNY for the respective years [3]. Summary by Sections Market Overview - The domestic market for egg products is vast, with the baking and catering industries showing robust growth rates of 9.9% and 10.0% CAGR from 2019 to 2022, respectively. This trend is expected to continue, further driving the expansion of the egg product market [2][63]. - The company is positioned to benefit from the recovery in consumer spending, with a notable increase in demand for egg products as consumer preferences shift towards safety and health [62][63]. Financial Performance - The company has demonstrated a strong revenue growth trajectory, with total revenue increasing from 620 million CNY in 2020 to 890 million CNY in 2022, reflecting a CAGR of 9.4% despite the pandemic's impact [30]. - The gross margin for the company's pre-prepared products has significantly improved, reaching 25.1% in the first half of 2023, up from 13.4% in 2019, indicating a strong potential for profitability in this segment [31][78]. Product Development - The company has a diverse product portfolio, including liquid eggs, egg powders, and pre-prepared egg products, which are essential for various food processing and catering applications. The introduction of high-value-added products like egg white beverages is expected to open new retail market opportunities [29][54]. - The company is actively expanding its production capacity through fundraising initiatives, which will enhance its ability to meet growing demand and improve operational efficiency [79].
国内蛋液行业第一品牌，发力预制品开拓增长空间