Core Viewpoint - Dongwu Securities research report highlights that Yanjinpuzi has consistently demonstrated a keen ability to capture trends and adapt deeply over its more than twenty years of development, positioning itself as a leading platform-type snack enterprise with a successful single-product strategy debut [1] Group 1: Company Strengths - The company has established comprehensive leading advantages in channels, supply chains, organizational management, and product category matrix compared to domestic peers [1] - The company’s capabilities in all-channel layout are particularly outstanding, supported by a proactive corporate culture and a well-structured organizational framework with effective incentive mechanisms [1] - Recent years have seen rapid advancements in product innovation, supply chain upgrades, and brand perception shaping [1] Group 2: Market Positioning - The company is viewed as capable of becoming a platform-type snack enterprise, with its experience in mergers and acquisitions providing valuable insights, while still needing to integrate local flavors [1] - The overall strength of the company is deemed excellent, with a focus on adapting to market trends and enhancing operational efficiencies [1]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has demonstrated strong adaptability to market trends over its 20-year development, transitioning from a follower to a leader in the Chinese snack industry [2][15] - The company has established a comprehensive competitive advantage in channels, supply chain, and brand management, positioning itself to become a platform-type snack enterprise [3][18] - The company is expected to achieve significant profit growth, with net profits projected to reach 819.71 million, 1,008.28 million, and 1,224.11 million yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 28%, 23%, and 21% [1][3] Summary by Sections Company Overview - The company has evolved through three stages: initial exploration (2005-2016), rapid expansion (2017-2020), and strategic upgrade (2021-present) [15][17] - During the initial phase, the company focused on capturing offline channel benefits through direct sales and partnerships with major supermarkets [15] - The rapid expansion phase saw the introduction of new product lines and innovative sales strategies, such as the "store island" model, which significantly boosted sales [16] Strategic Developments - The company has initiated a multi-brand and multi-category strategy, aiming for a comprehensive channel and supply chain upgrade [17][18] - The introduction of the "1+7" strategy in 2023 aims to cultivate various sub-brands, focusing on one core sub-brand every 1-2 years [18][19] - The company has successfully launched notable products like "Big Devil" and "Egg Emperor," enhancing its market presence [18] Financial Performance - The company has shown a steady increase in revenue, with a projected compound annual growth rate (CAGR) of 32.5% from 2021 to 2024 [18] - Profit margins have improved, with net profit margins reaching approximately 14% in 2025, driven by scale effects and brand strength [48] - The company's financial metrics indicate strong inventory and receivables turnover, outperforming industry averages [53]