JINZAI FOOD GROUP CO.(SZ:003000)2024-04-01 16:00Investment Rating - The report assigns an "Outperform" rating to Jinzai Food Group with a target price of RMB 16.00 per share [1][26]. Core Insights - In 2023, Jinzai Food Group achieved a revenue of RMB 2.07 billion, representing a year-over-year growth of 41.26%, and a net profit attributable to shareholders of RMB 210 million, which is a 68.17% increase year-over-year [19][20]. - The company successfully completed its three-year doubling target, with significant profit growth in Q4, where revenue grew by 26.51% year-over-year and net profit attributable to shareholders surged by 122.61% year-over-year [21][20]. Summary by Sections Financial Performance - The company reported a gross profit increase of 55.27% year-over-year, driven by a 41.26% increase in revenue and a 2.54 percentage point rise in gross profit margin [20][19]. - For Q4 alone, the gross profit margin improved by 7.91 percentage points, leading to a gross profit increase of 67.02% year-over-year [21]. Product Performance - Fish products generated RMB 1.29 billion in revenue, growing by 25.87% year-over-year, while poultry products, particularly quail eggs, saw a remarkable growth of 147.56%, surpassing RMB 300 million in sales [22][22]. - The company focuses on developing key products, including the "two billion-level" product, Jinzai deep-sea fish, and aims to establish quail eggs as its second "billion-level" product [25][25]. Channel Development - Jinzai Food Group has been expanding its omnichannel strategy, achieving offline revenue of RMB 1.65 billion (up 43.00% year-over-year) and online revenue of RMB 416 million (up 34.76% year-over-year) [24][24]. - The company is enhancing its distribution system and refining operations to adapt to the slowdown in traditional e-commerce traffic, leveraging new media trends for brand and sales growth [23][23]. Future Outlook - The company projects revenues of RMB 2.63 billion, RMB 3.33 billion, and RMB 4.13 billion for 2024, 2025, and 2026, respectively, with net profits of RMB 290 million, RMB 389 million, and RMB 509 million for the same years [26][26]. - Jinzai Food Group plans to continue focusing on product innovation and supply chain enhancements to support its growth trajectory [25][25].