Investment Rating - The report maintains a "Buy" rating for the company [1][4]. Core Views - The company's Q3 revenue and net profit attributable to shareholders increased by 0.11% and 9.10% year-on-year, respectively, with revenue showing improvement on a quarter-on-quarter basis. The net profit margin benefited from a decrease in raw material costs [1][4]. - The performance of mushroom sauce remains stable, while scallion oil sauce faces growth challenges. The company is actively addressing competitive issues and developing new channels, indicating that the scallion oil sauce has not yet reached its ceiling. There are expectations for a combination of online and offline channels to drive category recovery, along with contributions from other new products [1][4]. - The company anticipates EPS of 1.25 and 1.27 yuan for 2025 and 2026, respectively, corresponding to a valuation of 23X for 2025 [1][4]. Financial Performance Summary - For the first nine months of 2025, the company achieved revenue of 826 million yuan, a year-on-year decrease of 1.56%, and a net profit of 154 million yuan, an increase of 3.18%. In Q3 alone, revenue was 300 million yuan, up 0.11% year-on-year, and net profit was 53 million yuan, up 9.10% year-on-year [4]. - The gross margin for Q3 was 43.76%, an increase of 2.8 percentage points year-on-year, primarily due to lower prices for raw materials such as pepper and scallions. The selling expense ratio was 14.40%, down 0.5 percentage points year-on-year, while the management expense ratio was 5.93%, up 1.7 percentage points year-on-year [4]. - The company expects continued cost benefits and improved production efficiency from the launch of smart production lines, along with structural optimization leading to sustained gross margin improvement [4]. Future Outlook - The company is optimistic about the stable growth of mushroom sauce and anticipates new products like garlic sauce and zero-fat spicy sauce to contribute to growth in the coming year [4]. - The report highlights that the company is reducing promotional expenses in a weak recovery consumer environment, which, combined with cost reductions, is expected to enhance profitability [4].