Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 6.85, based on a current price of HKD 5.62 [1][3]. Core Insights - The company reported a revenue of CNY 4.87 billion for 2023, a year-on-year increase of 5.2%, and a net profit of CNY 880 million, reflecting a significant year-on-year growth of 481.9% [2][13]. - The growth in vegetable products is notable, with a revenue increase of 25.1%, while the sales of seasoned noodle products faced pressure, declining by 6.2% [2][15]. - The company is actively exploring new channels, particularly in the snack wholesale sector, and has accelerated its product launches to seek new growth opportunities [3][28]. Revenue and Profitability - The company's revenue structure shows a gradual balance between seasoned noodle products and vegetable products, with the latter's revenue share increasing significantly [2][13]. - The gross profit margin improved to 47.7%, up by 5.4 percentage points year-on-year, driven by lower raw material costs and an increase in high-margin vegetable products [18][19]. - The adjusted net profit margin was 19.9%, reflecting a slight increase of 0.2 percentage points year-on-year [18][19]. Product Performance - For 2023, the revenue from seasoned noodle products was CNY 2.55 billion, while vegetable products generated CNY 2.12 billion [2][15]. - The sales volume for seasoned noodle products decreased by 17.4%, while vegetable products saw a 31.1% increase in sales volume [15][18]. - The company has optimized its product structure, leading to an increase in average prices for seasoned noodle products despite a decline in sales volume [15][18]. Market Position and Strategy - The company holds a leading position in the spicy snack market, with a market share of 6.2% as of 2022, significantly outperforming its closest competitors [9][31]. - The company is focusing on enhancing its presence in both domestic and overseas markets, with overseas revenue growing by 49.1% [19][21]. - The company plans to increase its revenue contribution from new product launches and snack wholesale channels, aiming for a double-digit revenue share from these segments by 2024 [3][28]. Financial Forecast - The forecast for net profit is CNY 1.05 billion for 2024, CNY 1.22 billion for 2025, and CNY 1.41 billion for 2026, with corresponding EPS of CNY 0.45, CNY 0.52, and CNY 0.60 [3][28]. - The company is expected to maintain a gross profit margin of around 48% to 49% over the next few years, with vegetable products continuing to drive profitability [28][29].
2023年年报点评：蔬菜制品增长亮眼，量贩渠道开拓可期