Zhejiang Wufangzhai Industry (SH:603237) Huaxin Securities·2024-04-25 05:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance met expectations, with a focus on optimizing traditional store operations [1] - The company is a leading player in the rice dumpling industry, leveraging a dual strategy of "food + catering" for growth [4] - The company is actively expanding its product lines beyond rice dumplings, with promising developments in mooncakes and rice balls [4] Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 2.635 billion yuan, a year-on-year increase of 7%, primarily driven by strong sales of rice dumplings [1] - The net profit attributable to shareholders for 2023 was 166 million yuan, up 20% year-on-year [1] - The company's gross margin for 2023 was 36.39%, a decrease of 1 percentage point year-on-year [1] - For Q1 2024, total revenue was 207 million yuan, a decrease of 4% year-on-year, with a net profit of -70 million yuan [1] Product Segments - The rice dumpling segment generated revenue of 1.940 billion yuan in 2023, an increase of 11% year-on-year, with sales volume reaching 54,400 tons [1] - The mooncake segment reported revenue of 228 million yuan in 2023, a decrease of 4% year-on-year [1] - The rice ball segment showed growth potential, with revenue of 36 million yuan in Q1 2024, reflecting a 656.41% increase year-on-year [1] Channel Performance - Revenue from chain stores was 364 million yuan in 2023, up 27% year-on-year, while Q1 2024 saw a decline of 5% [3] - E-commerce revenue was 887 million yuan in 2023, an increase of 8%, but dropped 24% in Q1 2024 [3] - The company is focusing on optimizing its traditional store network while expanding in key cities [3] Profit Forecast - The earnings per share (EPS) forecast for 2024-2026 is projected at 1.41, 1.73, and 2.03 yuan respectively, with corresponding price-to-earnings (PE) ratios of 20, 16, and 14 times [4]