Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company achieved a total revenue of 2.07 billion yuan in H1 2025, representing a year-on-year growth of 16.2%, with a net profit attributable to the parent company of 171 million yuan, up 26.24% year-on-year [2]. - The cream segment continues to show high growth, driven by the performance of whipped cream, while the new retail channels in the catering sector are expanding [3]. - The company has optimized its cost control and efficiency, leading to improved profitability [4]. Revenue and Profitability - In H1 2025, revenue from various product categories was as follows: frozen baking (1.125 billion yuan, +6.08%), cream (558 million yuan, +28.7%), fruit products (83 million yuan, +7.7%), sauces (142 million yuan, +36.45%), and other baking materials (151 million yuan, +63.84%) [3]. - The revenue from the cream business is expected to continue growing, with the company planning to expand its product matrix [5]. Cost Management and Margins - The gross margin for Q2 2025 was 30.72%, showing a year-on-year decrease of 1.89 percentage points but an increase of 0.73 percentage points from the previous quarter [4]. - The company has implemented effective cost control measures, resulting in a sales expense ratio of 11.14%, a management expense ratio of 5.72%, and a research and development expense ratio of 3.41% [4]. Earnings Forecast and Valuation - The net profit forecasts for 2025-2027 have been raised to 352 million yuan, 419 million yuan, and 494 million yuan, respectively, reflecting increases of 6.0%, 8.7%, and 11.7% compared to previous estimates [5]. - The current stock price corresponds to a P/E ratio of 23, 19, and 17 for the years 2025, 2026, and 2027, respectively [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The company reported a revenue of 15.13 billion yuan for 2024, representing a year-on-year increase of 7.7%. The net profit attributable to shareholders was 1.485 billion yuan, up 0.46% year-on-year. However, in Q1 2025, the revenue decreased to 3.6 billion yuan, a decline of 4.13%, and the net profit dropped to 395 million yuan, down 10.01% year-on-year [2][6]. Summary by Sections Revenue Performance - In 2024, the company's revenue reached 15.13 billion yuan, with various segments showing different growth rates: - Instant noodles and frozen prepared foods saw a decline of 3.14% - Prepared dishes increased by 10.76% - Agricultural products decreased by 11.74% - The overall revenue growth was supported by the recovery in the catering sector, particularly in traditional hot pot products [11]. - For Q1 2025, revenue from frozen noodles and prepared foods showed mixed results, with a 3.17% increase in frozen noodles but a 12.48% decline in prepared dishes [11]. Profitability and Cost Control - The net profit margin for 2024 decreased by 0.71 percentage points to 9.82%, while the gross margin increased by 0.09 percentage points to 23.3%. The company effectively managed costs, with the expense ratio rising by 0.67 percentage points to 10.03% [11]. - In Q1 2025, the net profit margin fell by 0.72 percentage points to 10.96%, with a gross margin decline of 3.23 percentage points to 23.32%. Despite the drop in gross margin, the company maintained effective cost control [11]. Future Outlook - The company is expected to enhance its upstream supply chain management to mitigate cost fluctuations. The introduction of new products and acquisitions is anticipated to improve revenue streams [11]. - Forecasts for 2025 and 2026 suggest net profits of 1.53 billion yuan and 1.71 billion yuan, respectively, with corresponding earnings per share of 5.21 yuan and 5.84 yuan [11].