Hengshun Vinegar(SH:600305) Changjiang Securities·2024-05-17 03:32Investment Rating - The investment rating for the company is "Buy" and is maintained [5][14]. Core Views - Short-term demand remains under pressure, but internal product optimization is ongoing. The company has eliminated 212 low-margin and inefficient products in 2023 and has launched 90 new products, achieving sales of over 80 million yuan, a year-on-year increase of 20.7% [4][5]. - Strategic initiatives are being implemented, with expectations for medium to long-term operational improvements. The company has successfully completed a targeted issuance project for capacity expansion and is focusing on the simultaneous development of its three main product categories: vinegar, wine, and sauce [5][12]. - The company anticipates a recovery in net profit, projecting 132 million yuan for 2024 and 174 million yuan for 2025, with corresponding EPS of 0.12 yuan and 0.16 yuan, leading to PE ratios of 69 and 52 times respectively [5][12]. Financial Summary - For 2023, the company reported total revenue of 2.106 billion yuan, a year-on-year decrease of 1.52%, and a net profit attributable to shareholders of 86.89 million yuan, down 37.03% year-on-year. The first quarter of 2024 showed total revenue of 460 million yuan, a year-on-year decrease of 24.89% [11][12]. - The company's gross profit margin for 2023 was 32.98%, down 1.38 percentage points year-on-year, while the net profit margin decreased to 4.13%, down 2.33 percentage points year-on-year. However, in Q1 2024, the net profit margin improved to 11.99%, with a gross profit margin of 41.38% [12][19].