Zhejiang Yiming Food (605179) 华鑫证券·2024-05-02 02:00Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Views - The company has shown a recovery in profit growth, with lean production efforts yielding positive results [10]. - In Q1 2024, the company reported total revenue of 643 million yuan, a year-on-year increase of 11%, and a net profit attributable to shareholders of 10 million yuan, a significant increase of 126% year-on-year [10]. - The gross margin improved by 1 percentage point to 30.60% in Q1 2024, indicating enhanced profitability [10]. - The report highlights strong growth in direct sales channels, with online channels expected to continue their upward trend [10]. Financial Summary - The company's revenue forecast for 2023A is 2,643 million yuan, with expected growth rates of 8.7% for 2023, 11.3% for 2024, 10.5% for 2025, and 9.1% for 2026 [19]. - The net profit forecast for 2023A is 22 million yuan, with growth rates of 117.2% for 2023, 185.1% for 2024, 42.5% for 2025, and 36.9% for 2026 [19]. - The diluted earnings per share (EPS) is projected to be 0.06 yuan for 2023, increasing to 0.31 yuan by 2026 [19]. - The return on equity (ROE) is expected to rise from 2.0% in 2023 to 9.4% in 2026 [19].