Sichuan Teway Food (SH:603317) Haitong Securities·2024-03-28 16:00Investment Rating - The report maintains an "Outperform the Market" rating for Tianwei Foods [18][13]. Core Views - The company achieved a total revenue of 3.149 billion yuan in 2023, representing a year-on-year increase of 17.0%, and a net profit of 457 million yuan, up 33.7% year-on-year. The Q4 revenue was 915 million yuan, also up 17.0% year-on-year, with a net profit of 136 million yuan, increasing by 39.9% year-on-year [20][10]. - The company has launched an employee stock ownership plan, aiming to enhance employee motivation, with a target revenue growth rate of no less than 15% for 2024 [5][9]. - The gross profit margin for 2023 was 37.9%, an increase of 3.66 percentage points year-on-year, driven by lower raw material costs and product upgrades [11][10]. Financial Summary - Revenue (in million yuan): - 2022: 2,691 - 2023: 3,149 - 2024E: 3,664 - 2025E: 4,215 - 2026E: 4,828 - Year-on-year growth rates: 2023: 17.0%, 2024E: 16.4%, 2025E: 15.1%, 2026E: 14.5% [4][24]. - Net Profit (in million yuan): - 2022: 342 - 2023: 457 - 2024E: 565 - 2025E: 680 - 2026E: 792 - Year-on-year growth rates: 2023: 33.7%, 2024E: 23.8%, 2025E: 20.3%, 2026E: 16.5% [4][24]. - Gross Margin: - 2023: 37.9% - 2024E: 38.3% - 2025E: 38.5% - 2026E: 38.7% [4][24]. Product Performance - The Chinese cuisine seasoning business saw a revenue increase of 28.6% in 2023, benefiting from product upgrades and the consolidation of Shicui Foods [10][11]. - The company’s product matrix continues to optimize, with successful new product launches such as the spicy grilled fish [10][11]. - The revenue from the sausage and cured meat seasoning increased by 47.7%, attributed to the decline in pork prices [10][11]. Market Positioning - The company aims for a revenue growth target of 15% for 2024 and a net profit growth target of 20% [5][9]. - The report suggests that the company is well-positioned to benefit from ongoing product innovation and market expansion strategies [10][11].