Group 1: Investor Relations Activity Overview - The investor relations activity was conducted online on June 16 and June 18, 2025, involving various institutional investors [3][5] - Participating institutions included West Securities, Dongwu Securities, and several well-known funds and investment companies [3][5] Group 2: Acquisition of Tongyihe - The company introduced the acquisition of 51% of Tongyihe Precision Technology Co., Ltd., a recognized player in precision mold manufacturing [5][6] - Tongyihe specializes in precision molds and components, with major clients including global automotive parts companies such as Faurecia and Magna [5][6] Group 3: Competitive Advantages of Tongyihe - Tongyihe holds 20 patents, including 3 invention patents and 17 utility model patents, related to its core business [8] - The company has established long-term relationships with major clients, ensuring stable customer resources [8][9] - Tongyihe has a leading market position in the domestic precision mold industry, particularly in hydraulic precision molds [8][9] Group 4: Synergies from the Acquisition - The acquisition will enable customer resource sharing and market collaboration, expanding the customer base for both companies [10] - Supply chain integration will optimize procurement processes and reduce costs by leveraging the combined purchasing power [10][11] - The transaction aims to enhance technical collaboration, improving the overall metal forming process and service offerings [10][11] Group 5: Business Growth and New Client Development - The company plans to deepen its focus on the suspension business, with ongoing projects and collaborations with various automotive clients [11][12] - New technologies, such as the second and third generation welding ring production lines, are expected to enhance production efficiency and reduce costs [11][12]

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [1][13]. Core Insights - The company reported a revenue of 1.71 billion yuan and a net profit of 180 million yuan for 2024, showing a year-on-year revenue decline of 1.8% but a net profit increase of 8.0%. In Q1 2025, the revenue was 360 million yuan, with a significant decline in net profit by 75.0% year-on-year [1][3]. - The company is a leader in the domestic aseptic packaging market, with a market share of approximately 10.5% in the Chinese aseptic packaging sales volume and 13.4% in the liquid milk market. The core customer, Yili, experienced a revenue decline of 8.2% in 2024 [1][7]. - The gross margin improved to 23.8% in 2024, up by 2.1 percentage points year-on-year, while the net profit margin also increased to 10.8% [1][7]. Financial Summary - For 2024, the company achieved total revenue of 1,706 million yuan, with a projected growth of 3.4% in 2025, reaching 1,764 million yuan. The net profit is expected to grow by 14.9% in 2025, reaching 211 million yuan [3][8]. - The earnings per share (EPS) for 2024 is projected at 0.44 yuan, with a price-to-earnings (P/E) ratio of 22. The target price is set at 11.7 yuan, compared to the current price of 9.69 yuan [3][8]. - The company’s total assets are projected to grow from 3.58 billion yuan in 2024 to 4.20 billion yuan by 2027, indicating a steady growth trajectory [8].

Core Viewpoint - The company reported a slight decline in revenue for 2024, but an increase in net profit, indicating a mixed performance amidst market challenges [1][2]. Financial Performance - In 2024, the company achieved revenue of 1.71 billion, net profit of 180 million, and net profit excluding non-recurring items of 160 million, with year-on-year changes of -1.8%, +8.0%, and -4.2% respectively [1]. - For Q1 2025, the company reported revenue of 360 million, net profit of 10 million, and net profit excluding non-recurring items of 10 million, reflecting year-on-year declines of -18.2%, -75.0%, and -74.5% respectively [1]. Market Dynamics - The liquid milk market is contracting, impacting the company's liquid milk packaging revenue, which was 1.67 billion in 2024, down 1.1% year-on-year [2]. - The non-carbonated soft drink packaging revenue fell significantly by 35.4% to 30 million in 2024, compared to a growth of 45.3% in the same period of the previous year [2]. - The total packaging volume for 2024 was 12.08 billion units, a decrease of 1.4% year-on-year, with the company holding a 10.5% share of the Chinese aseptic packaging market and a 13.4% share in the liquid milk packaging segment [2]. Profitability and Cost Management - The company improved its gross margin to 23.8% in 2024, an increase of 2.1 percentage points year-on-year, while the net profit margin reached 10.8%, up 1.0 percentage points [3]. - In Q1 2025, the gross margin was 25.2%, reflecting a year-on-year increase of 2.7 percentage points, although it decreased slightly by 0.2 percentage points from the previous quarter [3]. - The company experienced fluctuations in expense ratios, with selling, administrative, and financial expense ratios reported at 3.5%, 8.1%, and 5.8% respectively for Q1 2025, with significant increases in financial expenses due to acquisition loan interest [3]. Strategic Outlook - The company has become the largest shareholder of Fenmei Packaging, which is expected to enhance synergies in capacity, research and development, and customer relations, potentially increasing market share [2]. - The company anticipates that the core client, Yili, will see a positive revenue trend in Q1 2025, which may further support growth [3].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [7][13]. Core Views - The company reported a revenue of 1.71 billion yuan and a net profit of 180 million yuan for 2024, showing a year-on-year revenue decline of 1.8% but a net profit increase of 8.0%. For Q1 2025, the revenue was 360 million yuan, with a significant decline in net profit by 75.0% year-on-year [1][3]. - The company is positioned as a leader in the domestic aseptic packaging market, with a notable market share of approximately 10.5% in the Chinese aseptic packaging sales volume and 13.4% in the liquid milk market [7][8]. - The gross margin improved to 23.8% in 2024, up by 2.1 percentage points year-on-year, while the net profit margin also increased to 10.8% [7][8]. - The company anticipates synergies from the acquisition of Fenmei Packaging, which is expected to enhance its production capacity, research and development, and customer base [7][8]. Financial Summary - For 2024, the company achieved total revenue of 1,706 million yuan, with projected growth rates of 3.4%, 6.3%, and 7.3% for 2025, 2026, and 2027 respectively [3][8]. - The net profit for 2024 was 184 million yuan, with expected growth rates of 14.9%, 7.1%, and 7.5% for the following years [3][8]. - The earnings per share (EPS) for 2024 is projected at 0.44 yuan, with a price-to-earnings (P/E) ratio of 22 [3][8]. - The target price for the company's stock is set at 11.7 yuan, compared to the current price of 9.69 yuan [3][8].

Core Viewpoint - The company reported Q1 2025 earnings that fell short of expectations, with revenue and net profit declining significantly year-on-year, leading to a slight downward revision of profit forecasts for 2025-2027 [1][2]. Group 1: Financial Performance - Q1 2025 revenue and net profit were 640 million and 70 million yuan, respectively, representing year-on-year declines of 24.8% and 57.5% [1]. - The revenue drop was attributed to early inventory stocking for the Spring Festival, channel inventory clearance, and slightly lower-than-expected demand recovery [1]. - The gross margin for Q1 2025 decreased by 3.3 percentage points year-on-year to 40.7%, while the net profit margin fell by 8.56 percentage points year-on-year [2]. Group 2: Cost and Expense Analysis - The company experienced an increase in expense ratios across sales, management, finance, and R&D, primarily due to a decrease in revenue volume while maintaining stable absolute expense values [2]. - The company is expected to control expenses effectively throughout 2025, particularly by reducing spending in traditional supermarket channels and increasing investment in small B channels [3]. Group 3: Strategic Outlook - The company is focusing on strengthening its position in the C-end channel and has made breakthroughs in e-commerce platforms like Douyin and Xiaohongshu [3]. - The completion of acquisitions such as Shicui and Jiadian Zhiwei is anticipated to enhance the company's channel capabilities and support long-term growth [3]. - The company is actively preparing for seasonal products, such as crayfish seasoning, which is expected to drive revenue recovery in Q2 2025 [1].

Investment Rating - The investment rating for Tianwei Foods is maintained at "Outperform" [1] Core Views - The company's Q1 2025 revenue and net profit were below expectations, with revenue at 640 million and net profit at 70 million, representing year-on-year declines of 24.8% and 57.5% respectively. This was attributed to factors such as early inventory stocking for the Spring Festival, channel inventory clearance, and slightly lower-than-expected demand recovery [2][3] - The gross margin for Q1 2025 decreased by 3.3 percentage points year-on-year to 40.7%, while the net profit margin fell by 8.56 percentage points year-on-year. This decline in profitability was mainly due to changes in product mix and increased expense ratios as a result of lower revenue [3] - The company is focusing on expanding its small B channel and has made acquisitions to enhance its market position. The expectation is that the synergies from these acquisitions will gradually be realized, supporting long-term growth [4] Financial Summary - For the fiscal years 2023 to 2027, the projected revenue growth rates are 17.0%, 10.4%, 10.6%, 14.2%, and 13.9% respectively, with net profit growth rates of 33.7%, 36.8%, 11.3%, 12.0%, and 12.4% [6] - The projected P/E ratios for 2025 to 2027 are 17.8, 15.9, and 14.1 respectively, indicating a decreasing trend in valuation multiples over the forecast period [6][11] - The company’s total assets are expected to grow from 5,274 million in 2023 to 7,943 million in 2027, reflecting a robust growth trajectory [10]

Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in volumes to $45 billion, with gross revenue less network fees rising 40% to $369 million [6][24] - Adjusted EBITDA increased 38% to $169 million, with adjusted EBITDA margins at 46%, slightly above the guidance of 45% [7][24] - Adjusted EPS for the quarter was $1.07 per share, reflecting strong performance [8][28] Business Line Data and Key Metrics Changes - Subscription and other revenue grew 77% year-over-year to $93 million, driven by success in SMB, SkyTab, and further penetration in the sports and entertainment vertical [24] - The company is focused on adding new merchants and expanding share of wallet, particularly in the restaurant sector with the introduction of SkyTab Air [9][10] Market Data and Key Metrics Changes - The company is experiencing stable volume trends across all end markets, with a slight deceleration attributed to seasonal factors [6][30] - International expansion is underway, with significant growth in markets like the UK, Ireland, and Germany, signing over 1,000 restaurants monthly [19][75] Company Strategy and Development Direction - The company is raising its full-year 2025 guidance, reflecting confidence in execution and growth drivers [6][29] - The acquisition of Global Blue is expected to unlock $80 million in revenue synergies by 2027, primarily through bundling payment solutions [21][90] - The company aims to replicate its successful U.S. model internationally, focusing on software and payment convergence [18][75] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending trends, noting stability despite macroeconomic uncertainties [30][100] - The company has a proven track record of growing payment volumes during economic downturns, indicating resilience [22][30] Other Important Information - The company repurchased approximately 686,000 shares for $63 million in Q1 and continued repurchases in April [27] - Total indebtedness has a weighted average cost of 3.4%, with net leverage at approximately 2.4 times [28] Q&A Session Summary Question: How would you describe the competitive environment in international markets? - Management noted that the international opportunity mirrors the U.S. market evolution, with a lack of convergence among software, hardware, and payment solutions [36][39] Question: Can you touch on what you're seeing in the market more broadly into April? - Management indicated stable trends in same-store sales across various segments, with modest compression in restaurants and hotels [42][46] Question: Where are you on the synergy update from recent acquisitions? - Management highlighted successful cross-sell opportunities from acquisitions like Revel, contributing significantly to the SkyTab development pipeline [50][51] Question: What was organic and inorganic growth in the 40% GR LNF growth in the quarter? - Management stated that organic revenue growth is expected to be north of 20% for the year, with acquisitions providing noise in quarter-to-quarter comparisons [56][57] Question: Can you provide any color on the current revenue split between U.S. and international? - Management indicated that international revenue is still developing, with significant contributions expected from enterprise customers and SMB products [72][73]