Shanghai Bolex Food Technology (SH:603170) Huaxin Securities·2024-05-03 09:30Investment Rating - The report maintains a "Buy" investment rating for the company [1][15]. Core Views - The company has shown robust revenue growth, with total revenues for 2023 and Q1 2024 being 2.369 billion and 0.624 billion yuan respectively, reflecting year-on-year increases of 16% and 16% [1]. - The company's B-end business is a major growth driver, with significant contributions from large clients and ongoing operational advancements [1][15]. - The report highlights the company's strong R&D capabilities and its strategic focus on both B and C-end markets, indicating ample room for scale expansion [15]. Summary by Sections Financial Performance - The company reported a net profit of 301 million yuan for 2023, with a projected increase to 329 million yuan in 2024, representing a growth rate of 9.4% [4]. - The gross profit margin for 2023 was 33.1%, with expectations to improve to 34.5% in 2024 [6]. - The operating cash flow for Q1 2024 was 77 million yuan, marking a 29% increase year-on-year [1]. Revenue Breakdown - The company's revenue from the B-end channel for 2023 was 19.03 billion yuan, with a growth of 13% [14]. - The C-end segment is under development, with a clear strategy for product diversification and innovation to drive growth [14]. - The report notes that the company has expanded its distributor network, with 387 distributors as of Q1 2024, a net increase of 5 [14]. Future Projections - The report forecasts EPS of 0.82, 1.01, and 1.19 yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 18, 15, and 12 [15]. - The company is expected to maintain a steady growth trajectory, with projected revenue growth rates of 15.1% in 2024 and 13.8% in 2025 [4][6].