RICHEN(SH:603755) Huaxin Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" investment rating for the company, with projected EPS for 2024-2026 being 0.75, 0.98, and 1.23 CNY respectively, corresponding to PE ratios of 28, 21, and 17 times [36]. Core Views - The company has shown a strong performance with total revenue of 359 million CNY in 2023, reflecting a 16% increase, and a net profit of 56 million CNY, which is an 11% increase. The fourth quarter saw a significant revenue increase of 24% year-on-year [36]. - The company is focusing on expanding its production capacity to meet market demand, particularly in the condiment sector, where revenue from sauce products reached 267 million CNY, up 16% [36]. - The report highlights the company's strategy of optimizing product structure and expanding customer base, particularly in the restaurant sector, which is expected to support profit margin growth in the medium to long term [36]. Financial Summary - The company's main revenue is projected to grow from 359 million CNY in 2023 to 711 million CNY by 2026, with growth rates of 16.5%, 30.3%, 25.4%, and 21.0% for the respective years [27]. - The net profit is expected to increase from 56 million CNY in 2023 to 122 million CNY in 2026, with growth rates of 10.5%, 31.2%, 30.6%, and 26.0% [27]. - The report indicates a stable gross margin of approximately 38.76% for 2023, with expectations for stability in the future as the company prioritizes scale expansion [36].