Three Squirrels(SZ:300783) Guotai Junan Securities·2024-04-30 06:32Investment Rating - The report maintains a "Buy" rating for the company [3][15][26] - The target price is raised to 31.70 CNY, up from the previous 28.30 CNY [3][15] Core Insights - The company is experiencing a significant improvement in management efficiency due to ongoing optimization of its mechanisms, which is expected to enhance sales acceleration and management effectiveness [4][26] - The earnings per share (EPS) forecasts for 2024-2026 have been adjusted to 0.99 (+0.11), 1.34 (+0.16), and 1.84 (+0.28) CNY respectively, reflecting a positive outlook on profitability [3][15] - The company has implemented a dual incentive plan that binds core employees, with stock options and employee stock ownership plans aimed at driving growth and aligning interests [26][18] Financial Summary - The company’s revenue is projected to reach 10,218 million CNY in 2024, with a growth rate of approximately 43% [18][16] - The net profit attributable to shareholders is expected to be 397 million CNY in 2024, representing a growth of 80% compared to the previous year [18][16] - The report highlights a significant increase in operating profit margin, projected to rise to 3.2% in 2024 [16][18] Market Position - The company is positioned as a leading brand in the leisure food sector, primarily engaged in the research, testing, packaging, and sales of its own brand products [16][18] - The report notes that the company has a strong brand presence among consumers, particularly with its core brand "Three Squirrels" [16][18]