YouYou Foods(SH:603697) Huaxin Securities·2024-03-17 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [18][19]. Core Views - The company experienced a slight pressure on performance due to rising raw material costs, leading to a decrease in profitability [18]. - In 2023, the total operating revenue was 966 million yuan, a decrease of 6% year-on-year, with a net profit attributable to shareholders of 116 million yuan, down 24% [18][19]. - The company is focusing on solidifying its market presence through channel expansion and product price adjustments to cope with cost pressures [19]. Financial Forecasts - The forecasted operating revenue for 2024 is 1,087 million yuan, with a growth rate of 12.5% [1]. - The net profit attributable to shareholders is expected to reach 140 million yuan in 2024, reflecting a growth rate of 20.6% [1]. - The diluted earnings per share (EPS) is projected to be 0.33 yuan in 2024, with further increases to 0.37 yuan in 2025 and 0.42 yuan in 2026 [1][19]. Performance Metrics - The gross margin for 2023 was 29.37%, down 2 percentage points year-on-year, while the net margin was 12.02%, down 3 percentage points [18]. - The company reported a cash flow from operating activities of -0.04 million yuan in 2023, a decrease of 102% [18]. - The company aims to maintain a stable pricing strategy for its products while expanding its market reach [19].