Ligao Foods (300973) 东吴证券·2024-05-05 15:30Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [2]. Core Insights - The company aims to become a global integrated service provider in the baking industry, with a clear long-term strategy focusing on both channels and products [2]. - In 2023, the company achieved a revenue of 3.499 billion yuan, representing a year-on-year increase of 20.22%, while the net profit attributable to shareholders was 73 million yuan, a decline of 49.21% [1][11]. - The revenue growth was driven by the increase in cream sales, with significant growth in the catering channel, which nearly doubled [1]. - The company expects revenue for 2024 to reach 4.091 billion yuan, with a year-on-year growth of 16.9%, and net profit attributable to shareholders to rise to 280 million yuan, reflecting a substantial increase of 285% [2][11]. Financial Summary - In 2023, the revenue breakdown by product was as follows: frozen baked goods (2.211 billion yuan, +23.93%), cream (654 million yuan, +27.65%), fruit products (187 million yuan, -8.45%), sauces (233 million yuan, +18.12%), and other baking materials (187 million yuan, -8.75%) [1]. - The company’s operating cash flow for 2023 was 305 million yuan, with expectations to increase to 563 million yuan in 2024 [21]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.66 yuan, 2.10 yuan, and 2.53 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 22X, 17X, and 14X [2][11].