SEAMILD FOODS(SZ:002956)2024-05-06 01:00Investment Rating - The report assigns an "OUTPERFORM" rating to Guilin Seamild Foods with a target price of RMB 15.75 [1][13]. Core Insights - The company reported a stable performance in 2023 with a revenue of RMB 1.578 billion, representing a year-over-year (YoY) growth of 18.89%, and a net profit attributable to shareholders of RMB 115 million, up 6.13% YoY. In Q1 2024, revenue surged to RMB 566 million, marking a YoY increase of 46.07%, with a net profit of RMB 45 million, up 14.59% YoY [1][11][30]. - The company has focused on refining its operations across different channels, particularly enhancing its snack channel, which saw sales growth exceeding 180% YoY. The offline business also grew over 10% YoY, demonstrating the effectiveness of its strategy to activate sales potential [3][20]. Financial Performance Summary - In 2023, the company achieved a gross profit margin of 44.5%, an increase of 1.44 percentage points YoY, with gross profit rising by 22.87% to RMB 703 million. The period expense ratio increased by 1.61 percentage points to 37.07% [20]. - The company’s revenue projections for 2024-2026 are RMB 1.967 billion, RMB 2.378 billion, and RMB 2.782 billion, respectively, with net profits expected to be RMB 140 million, RMB 180 million, and RMB 221 million. The earnings per share (EPS) are projected at RMB 0.63, RMB 0.81, and RMB 0.99 for the same period [4][24]. Product and Channel Performance - The sales of oatmeal and high-growth probiotic protein powder exceeded RMB 10 million. In 2023, pure oatmeal revenue was RMB 644 million (YoY +4.00%), while composite oatmeal revenue reached RMB 661 million (YoY +33.76%). Cold oatmeal revenue was RMB 1.20 billion (YoY +21.99%) [12][21]. - By channel, direct sales generated RMB 632 million (YoY +28.06%), and distribution sales amounted to RMB 903 million (YoY +11.24%) [31].