短期增长承压，费率显著优化

Investment Rating - The report maintains a "Buy" rating for the company [4][13] Core Views - Short-term revenue growth is under pressure due to high base effects from the previous year and weak consumer demand, but channel inventory optimization is expected [2] - The company has reformed its sales incentive mechanism, shifting from dealer stock allocation to dealer sales, which is expected to alleviate dealer pressure and improve inventory management [2] - Cost reductions are anticipated in Q2 2024, driven by lower raw material prices for new ingredients, which are expected to be utilized from May to June 2024 [2] - The company is focusing on optimizing marketing expenses across product categories, with a particular emphasis on driving growth in pickled vegetables and radish categories [2] - The company is expanding its multi-channel strategy, including catering and e-commerce, with differentiated product offerings for online and offline channels [2] Financial Performance - In Q1 2024, the company reported revenue of RMB 750 million, a year-on-year decrease of 1.5%, while net profit attributable to shareholders increased by 3.9% to RMB 270 million [12] - Gross margin in Q1 2024 declined by 4.2 percentage points year-on-year to 52.1%, primarily due to higher raw material costs and changes in product mix [12] - Sales expenses in Q1 2024 decreased significantly, with the sales expense ratio dropping by 5.6 percentage points year-on-year to 12.2% [12] - The net profit margin in Q1 2024 improved by 1.9 percentage points year-on-year to 36.3%, driven by optimized expense management [12] Financial Projections - Revenue is projected to grow by 10.1% in 2024, reaching RMB 2.696 billion, with further growth of 9.4% and 9.3% in 2025 and 2026, respectively [6][14] - Net profit attributable to shareholders is expected to increase by 10.6% in 2024 to RMB 914 million, with growth rates of 12.5% and 9.4% in 2025 and 2026, respectively [6][14] - EPS is forecasted to rise from RMB 0.72 in 2023 to RMB 0.79 in 2024, RMB 0.89 in 2025, and RMB 0.97 in 2026 [6][14] - The company's P/E ratio is expected to decline from 18.2x in 2023 to 16.4x in 2024, 14.6x in 2025, and 13.4x in 2026, reflecting improved valuation metrics [6][14] Industry and Market Context - The company operates in the condiments and fermented products industry [4] - The report highlights the company's efforts to optimize its product portfolio and expand its market presence through multi-channel strategies, including catering and e-commerce [2]