QIANHE(SH:603027) Huaxin Securities·2024-05-03 10:30Investment Rating - The report maintains a "Buy" investment rating for the company [10][19]. Core Insights - The company continues to experience performance growth momentum, with a nationwide expansion strategy in progress [10]. - Revenue growth has shown a marginal slowdown due to a high base effect, but profitability remains robust [10]. - The company reported total revenues of 3.207 billion yuan for 2023, with a year-on-year growth rate of 31.6% [14]. - The net profit attributable to shareholders for 2023 was 530 million yuan, reflecting a year-on-year increase of 54.2% [14]. - The company has successfully expanded its distribution channels, with significant growth in both dealer and direct sales channels [12]. - The company’s gross profit margin for 2023 was 37.15%, benefiting from lower raw material prices [10]. Summary by Sections Financial Performance - Total revenue for 2023 was 3.207 billion yuan, with projections of 3.829 billion yuan for 2024, indicating a growth rate of 19.4% [14]. - The net profit for 2024 is projected to be 627 million yuan, with an expected growth rate of 18.2% [14]. - The diluted earnings per share (EPS) for 2024 is estimated at 0.61 yuan, with a corresponding price-to-earnings (P/E) ratio of 25 [19]. Market Expansion - The company has increased its dealer count significantly, with 1,020 new dealers added by the end of 2023, bringing the total to 3,356 by the end of Q1 2024 [12]. - Revenue from the eastern, southern, central, northern, and western regions for Q1 2024 was 1.90, 0.65, 1.36, 1.66, and 3.22 billion yuan respectively, showing positive growth in most regions [12]. Product Performance - The company’s soy sauce and vinegar revenues for 2023 were 2.040 billion yuan and 422 million yuan, respectively, with year-on-year growth rates of 35% and 12% [10]. - The gross profit margins for soy sauce and vinegar improved to 37.59% and 39.07% in 2023, respectively [10].