Sichuan Teway Food (SH:603317) Southwest Securities·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for Tianwei Foods (603317) with a current price of 12.40 CNY and a target price not specified for the next six months [2]. Core Views - The company reported a revenue of 3.15 billion CNY for 2023, representing a year-on-year growth of 17%, and a net profit attributable to the parent company of 456.7 million CNY, up 33.7% year-on-year [2]. - The company plans to distribute a cash dividend of 4 CNY per 10 shares, with a payout ratio of 92.6% [2]. - The company is launching an employee stock ownership plan for 120 middle and senior management personnel, with performance targets based on revenue growth of no less than 10% for 2024 and 26.5% for 2025 [2]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue is projected to grow from 3.15 billion CNY in 2023 to 4.86 billion CNY by 2026, with growth rates of 17.02%, 15.97%, 15.65%, and 15.10% for the respective years [1][14]. - Net profit attributable to the parent company is expected to increase from 456.7 million CNY in 2023 to 815.67 million CNY in 2026, with growth rates of 33.65%, 20.89%, 21.49%, and 21.60% [1][14]. - Earnings Per Share (EPS): - EPS is forecasted to rise from 0.43 CNY in 2023 to 0.77 CNY in 2026 [1][14]. - Return on Equity (ROE): - ROE is expected to improve from 10.58% in 2023 to 14.84% in 2026 [1][14]. - Valuation Metrics: - The price-to-earnings (PE) ratio is projected to decrease from 29 in 2024 to 16 in 2026, while the price-to-book (PB) ratio is expected to decline from 3.00 to 2.36 over the same period [1][14]. Business Segment Performance - The company’s B-end business showed strong performance, with significant growth in customized meal seasonings and e-commerce channels [2]. - Product growth rates for 2023 include: - Hot pot base: +2% - Chinese seasonings: +28.6% - Winter seasonings: +47.7% - Chicken essence: +14.8% - Spicy sauce: -18.5% [2]. - Revenue growth by channel for 2023: - Distributors: +8.8% - Customized meal seasonings: +32.2% - E-commerce: +93% [2]. Strategic Initiatives - The company is focusing on optimizing product structure and reducing costs to improve profitability, with a gross margin of 37.9% in 2023, up 3.7 percentage points year-on-year [2]. - The company aims to enhance its channel operations and expand its customer base in the B-end market, particularly in the restaurant sector [2].