Core Insights - The shift in consumer dietary preferences has evolved from "eating enough" to "eating better" and now to "eating healthier" [1] - The demand for functional foods and beverages is rising, driven by increased health awareness among various consumer demographics [1] - The FBIF2025 Food Expo highlighted "functional value" as a key topic, with brands linking product positioning to specific health benefits [1] Industry Trends - The market share of functional beverages has shown a year-on-year growth of 13.57% from Q1 2024 to Q1 2025 [3] - Consumers are willing to pay a premium for foods with health-beneficial functional ingredients, with 20% of global consumers expressing this willingness [3] - Key opportunities in functional ingredients include emphasizing product quality, freshness, and value for money [3] Company Developments - Meiji is developing a drinkable acidic whey protein beverage to cater to post-exercise consumption, addressing challenges in taste and texture [4] - COFCO International has entered the health food sector with products like glycerol diester oil and plant sterol protein milk, focusing on cardiovascular health due to the high prevalence of related diseases in China [4] - The production of functional foods requires advanced technology and significant R&D investment to extract effective components from raw materials [4] Future Outlook - The functional food and beverage sector is expected to be a lucrative market, supported by national health initiatives like the "Healthy China 2030" plan [5]

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 24.00, unchanged from the previous forecast [2][13]. Core Insights - The company is expected to achieve significant growth in revenue and profit due to the launch of new production lines for dietary fiber and allulose sugar, alongside strong market demand [3][10]. - The company's revenue for 2024 is projected to be 11.51 billion, representing a year-on-year increase of 32.6%, with a net profit of 2.49 billion, up 29.2% [13][10]. - The fourth quarter of 2024 is anticipated to show a substantial revenue increase of 55% year-on-year, with net profit growth of 28% [13][10]. Financial Summary - The company reported a total revenue of 722 million in 2022, which is expected to grow to 1,151 million in 2024, reflecting a compound annual growth rate (CAGR) of 32.6% [10][14]. - The net profit attributable to the parent company is projected to rise from 151 million in 2022 to 249 million in 2024, indicating a growth rate of 29.2% [10][14]. - The earnings per share (EPS) is expected to increase from 0.47 in 2022 to 0.77 in 2024 [10][14]. Market Position and Growth Potential - The company is positioned in a rapidly growing market for functional foods and beverages, with significant opportunities for expansion in both domestic and international markets [3][13]. - The launch of high-margin products like resistant dextrin is expected to enhance revenue structure and profitability [13][10]. - The company has demonstrated strong capabilities in market and customer development, with a focus on innovative products and trends [13].