Investment Rating - The investment rating for the company is "Buy-A" with a target price of HKD 19.49, maintaining the rating [4]. Core Views - The company reported a revenue of HKD 6.147 billion in 2023, which remained flat year-on-year, while net profit increased by 11.2% to HKD 907 million [1][8]. - The company aims to enhance channel management and expand into B-end and overseas markets, with new product development contributing to revenue growth [9][10]. - The gross margin improved to 31.6% in 2023, driven by lower raw material costs and significant improvement in the gross margin of convenient foods [3][9]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of HKD 61.47 billion, net profit of HKD 9.07 billion, and a return on equity of 14.8% [1][12]. - The company declared a dividend of HKD 7.67 billion, with a payout ratio of approximately 90% [1]. Revenue Breakdown - Revenue from related parties and third parties was HKD 20.1 billion and HKD 41.4 billion respectively, with year-on-year changes of +35.0% and -11.2% [2]. - The hot pot seasoning category saw a total revenue of HKD 40.9 billion, with a year-on-year increase of 11.7% [2]. - The convenient food segment experienced a decline in revenue, with a total of HKD 13.8 billion, down 25.8% year-on-year [2]. Profitability and Margins - The gross margin for 2023 was 31.6%, an increase of 1.4 percentage points year-on-year, with significant improvements in the convenient food segment [3]. - The net profit margin for 2023 was 14.8%, reflecting a year-on-year increase of 1.8 percentage points [3][12]. Future Outlook - The company expects revenue growth to reach HKD 69.0 billion in 2024, with net profit projected at HKD 9.7 billion [9][10]. - The expansion of production capacity and optimization of the supply chain are anticipated to enhance operational efficiency and support revenue growth [9].
方便速食短暂承压，关联方修复迅速