Apple Group(SH:603020) Huaxin Securities·2024-04-23 04:00Investment Rating - The report maintains a "Buy" investment rating for the company [15][28]. Core Views - The company adheres to the philosophy of "leading with flavoring agents and integrating food ingredients," focusing on its main business while also paying attention to the development of traditional fields such as dairy and beverages, as well as other emerging sectors. The expansion of industrial chocolate production is viewed positively, creating a second growth curve for the company [15]. - The company's total revenue for 2023 was 2.783 billion yuan, a decrease of 13% year-on-year, primarily due to market demand pressure. The net profit attributable to shareholders was 91 million yuan, down 17% [20]. - The report forecasts earnings per share (EPS) for 2024-2026 to be 0.36, 0.42, and 0.47 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 22, 18, and 16 times [15][20]. Financial Summary - The company's revenue is projected to grow from 2.783 billion yuan in 2023 to 3.067 billion yuan in 2024, reflecting a growth rate of 10.2%. The net profit is expected to increase significantly by 51.3% in 2024, reaching 137 million yuan [20]. - The gross profit margin for 2023 was 14.82%, with expectations for improvement in subsequent years [20]. - The report highlights that the company has effectively controlled raw material costs, which has positively impacted its gross margin [20].