渠道继续扩张，保障收入增长

Investment Rating - The report maintains a "Buy" rating for Qianhe Condiment (603027) with a target price of 21.76 RMB [6][8] Core Views - The company's revenue and net profit grew significantly in 2023, with revenue reaching 3.207 billion RMB (up 31.62% YoY) and net profit reaching 530 million RMB (up 54.22% YoY) [3] - In Q1 2024, revenue grew 9.28% YoY to 895 million RMB, while net profit increased 6.66% YoY to 155 million RMB, slightly below expectations [3] - The company's channel expansion strategy continues to drive revenue growth, with a net increase of 1,020 distributors in 2023, particularly in central and western regions [4] - Product upgrades and cost reduction measures are expected to improve profitability, with gross margin increasing by 0.59 percentage points to 37.15% in 2023 [5] Financial Performance Revenue and Profit - 2023 revenue: 3.207 billion RMB (up 31.62% YoY) [3] - 2023 net profit: 530 million RMB (up 54.22% YoY) [3] - 2024E revenue: 3.768 billion RMB (up 17.49% YoY) [6] - 2024E net profit: 658 million RMB (up 24.06% YoY) [6] Product Performance - Soy sauce revenue: 2.04 billion RMB (up 34.85% YoY), accounting for 63.6% of total revenue [4] - Vinegar revenue: 422 million RMB (up 11.75% YoY), accounting for 13.2% of total revenue [4] - Gross margin for soy sauce: 37.59% (up 0.44 percentage points YoY) [4] - Gross margin for vinegar: 39.07% (up 2.05 percentage points YoY) [4] Regional Performance - Central region revenue: 449 million RMB (up 80.97% YoY) [4] - Eastern region revenue: 712 million RMB (up 30.94% YoY) [4] - Southern region revenue: 208 million RMB (up 26.00% YoY) [4] - Northern region revenue: 567 million RMB (up 27.09% YoY) [4] - Western region revenue: 1.229 billion RMB (up 23.77% YoY) [4] Valuation and Forecast - 2024E PE ratio: 24.2x [6] - 2024E target price: 21.76 RMB [6] - 2024-2026 revenue CAGR: 16.49% [6] - 2024-2026 net profit CAGR: 19.81% [6] Industry and Market Position - The company operates in the food and beverage industry, specifically in the condiment fermentation sector [8] - It has a strong market position with a focus on natural fermentation, zero-additive, and healthy products [5] - The company is expanding its national market presence, particularly in central and western regions [4]