Huangshanghuang(SZ:002695) KAIYUAN SECURITIES·2024-05-01 13:08Investment Rating - The report maintains an "Outperform" rating for the company, indicating an expected performance that is stronger than the market by 5% to 20% [10][19][28]. Core Views - The company experienced a 10.6% year-on-year decline in revenue for Q1 2024, primarily due to macroeconomic conditions and weak terminal demand, leading to a decrease in consumer purchasing frequency [19]. - Despite the short-term challenges in the prepared food business, the company is implementing a "1+N" operational model, focusing on Douyin promotions and community marketing to boost in-store business [19]. - The company plans to open 2,000 new stores throughout the year, targeting both established markets like Jiangxi and Guangdong and new markets around Shaanxi and Chongqing [19]. - The sales peak for rice products is anticipated during the Dragon Boat Festival, which is expected to contribute positively to revenue growth [19]. Financial Summary - In Q1 2024, the company achieved a gross margin of 35.6%, an increase of 6.5 percentage points year-on-year, attributed to lower raw material prices and stable supply [11]. - The company reported a net profit of 0.33 billion yuan for Q1 2024, a decrease of 10.1% year-on-year, but a recovery from losses compared to Q4 2023 [11]. - Revenue projections for 2024-2026 are 1.0 billion, 1.3 billion, and 1.7 billion yuan, respectively, with expected year-on-year growth rates of 44.5%, 27.4%, and 32.5% [19][38]. - The current price-to-earnings (P/E) ratios are projected at 44.9, 35.2, and 26.6 for the years 2024, 2025, and 2026, respectively [19][38].