QIANHE(603027) 光大证券·2024-05-03 07:32Investment Rating - The report maintains a "Buy" rating for Qianhe Condiment (603027 SH) [8] Core Views - Qianhe Condiment achieved significant revenue and profit growth in 2023 with revenues of 3 207 billion yuan (+31 6% YoY) and net profit of 530 million yuan (+54 2% YoY) [8] - The company's soy sauce business grew 34 9% YoY in 2023 driven by zero-additive product trends and market expansion [8] - Regional performance showed strong growth with central China leading at +81 0% YoY in 2023 [8] - Gross margin improved to 37 1% in 2023 due to cost reductions and product mix optimization [8] Financial Performance - 2023 Q4 saw a slight revenue decline of 0 8% YoY to 875 million yuan while Q1 2024 rebounded with 9 3% growth to 895 million yuan [8] - Net profit margin reached 16 5% in 2023 up 2 4 percentage points YoY [8] - The company expanded its distribution network adding 1 020 dealers in 2023 bringing the total to 3 250 [8] Future Outlook - The company plans to continue product innovation and optimize pricing strategies in 2024 [8] - Distribution channel expansion remains a key focus with further penetration into circulation channels [8] - Profit forecasts for 2024-2026 are adjusted to 640 million 776 million and 910 million yuan respectively [8] Valuation - Current PE ratios stand at 27x 22x and 19x for 2024-2026 respectively [8] - The company's EV EBITDA ratio is projected to decline from 22 8x in 2023 to 12 7x in 2026 [18] - ROE is expected to improve from 14 5% in 2023 to 17 4% in 2026 [18]