Investment Rating - The investment rating for the company is "Outperform" (maintained) [1] Core Views - The company's specialized reforms have shown results, leading to improved sales of meat products. The company reported a revenue of 28.41 billion yuan in H1 2025, a year-on-year increase of 3.0%, and a net profit attributable to shareholders of 2.323 billion yuan, up 1.2% year-on-year. The second quarter alone saw a revenue of 14.14 billion yuan, a 6.2% increase year-on-year, and a net profit of 1.186 billion yuan, up 15.7% year-on-year. The company maintains a high dividend payout ratio of 96.9%, making it a stable value investment target [3][4]. Summary by Sections Financial Performance - In Q2 2025, the meat product segment achieved a revenue of 5.62 billion yuan, a year-on-year increase of 0.8%. The sales volume and average price were approximately 328,000 tons and 17.1 yuan/kg, respectively, with year-on-year increases of 0.6% and 0.1%. The operating profit for this segment was 1.5 billion yuan, up 4.4% year-on-year, with a profit per ton of approximately 4,569 yuan, maintaining a high level [4][5]. Business Segments - The slaughtering business reported a revenue of 6.77 billion yuan in Q2 2025, a year-on-year increase of 0.6%, but the operating profit dropped significantly by 61.7% to 59.89 million yuan due to fluctuating pig prices. The fresh product sales volume was 415,000 tons, up 12.2% year-on-year, but the average price fell by 10.4% year-on-year [5]. Future Outlook - The company is expected to continue improving its sales volume and maintain high profit margins in the meat product segment, with anticipated cost reductions and increased market investments. The company aims to enhance its fresh product sales through new customer development and differentiated product promotion [4][5]. Financial Projections - The company forecasts net profits attributable to shareholders of 5.24 billion yuan, 5.51 billion yuan, and 5.82 billion yuan for 2025, 2026, and 2027, respectively. The expected earnings per share (EPS) for the same years are 1.51 yuan, 1.59 yuan, and 1.68 yuan, with corresponding price-to-earnings (P/E) ratios of 16.6, 15.8, and 15.0 times [3][6].

Core Viewpoint - The company is expected to achieve significant revenue and profit growth in the first half of 2025, driven by the successful launch of new products and the expansion of emerging sales channels [1][2]. Group 1: Financial Performance - For the first half of 2025, the company anticipates revenue between 746-798 million yuan, representing a year-on-year increase of 40.9%-50.8% [1] - The expected net profit attributable to shareholders is projected to be between 105-112 million yuan, reflecting a year-on-year growth of 37.9%-47.6% [1] - In Q2 2025, the company forecasts revenue of 363-415 million yuan, with a year-on-year growth of 42.7%-63.3% [1] Group 2: Growth Drivers - The company has seen rapid growth in revenue due to the successful launch of its core product, deboned duck feet, in Q3 2024, which has become a key revenue driver [1] - The membership-based supermarket channel has emerged as a significant contributor to revenue growth, with additional product launches expected to further enhance performance [1][2] - The company is also benefiting from strong performance in snack chains and e-commerce channels, contributing to overall revenue increases [1] Group 3: Profitability and Cost Management - The significant increase in profitability in Q2 2025 is attributed to a temporary adjustment in expense allocation, with a reduction in sales expenses expected [2] - Compared to Q1 2025, the profit growth in Q2 is also influenced by a decrease in the impact of financial income on profits [2] - The company is positioned to benefit from the expanding snack food industry, particularly in the spicy snack segment, which is favored by younger consumers [2] Group 4: Future Outlook - The company is expected to maintain a high level of revenue elasticity in 2025, driven by its proactive approach to embracing online and new retail channels [2] - The earnings per share (EPS) forecasts for 2025-2027 are projected at 0.47 yuan, 0.61 yuan, and 0.74 yuan, respectively, with corresponding dynamic price-to-earnings ratios of 26x, 20x, and 17x [3]

Core Viewpoint - The company is expected to continue expanding its profitability in FY24, driven by internal organizational reforms and strong momentum in emerging channels and overseas markets [1] Financial Performance - For FY24, the company's revenue decreased by 0.32% year-on-year, primarily due to the underperformance of ice cream and rice snacks [2] - Gross margin increased by 0.99 percentage points year-on-year, mainly due to lower costs of raw materials and packaging [2] - The net profit margin improved by 1.52 percentage points to 18.41%, with net profit increasing by 8.67% year-on-year [2] - The dividend payout ratio for FY24 was 39.8%, significantly lower than the average level from FY21 to FY23 [2] Product Performance - Dairy beverages saw a revenue increase of 1.3% year-on-year, with a gross margin improvement of 1.2 percentage points, showing a clear recovery in the second half of the fiscal year [2] - Rice snacks experienced a revenue decline of 1.2% year-on-year, with a gross margin decrease of 1.9 percentage points, mainly due to the impact of gift packages and changes in product structure [2] - Snack food revenue decreased by 2.6% year-on-year, but gross margin increased by 0.5 percentage points, with ice cream showing a decline in the first half but achieving rapid growth in the second half [2] Organizational Changes and Market Strategy - In the second half of FY24, the company initiated internal organizational reforms, establishing product-specific divisions to enhance channel collaboration and manage domestic and international operations [3] - The company deepened cooperation with leading snack retailers, with revenue from snack retailers accounting for about 10% [3] - Emerging channels experienced double-digit growth year-on-year, with revenue contribution approaching 10% [3] - Overseas revenue grew by double digits year-on-year, with significant growth in markets such as Japan, North America, and parts of Southeast Asia [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated significant growth potential, with a focus on accelerating the pace of new product launches [1] - In Q1 2025, the company achieved revenue of 380 million yuan, a year-on-year increase of 39.2%, and a net profit attributable to shareholders of 50 million yuan, up 16.2% year-on-year [7] - The company is actively expanding into new channels, particularly in membership-based supermarkets and e-commerce, which are expected to contribute to future growth [7] Financial Performance Summary - Total revenue projections for the company are as follows: - 2023A: 966.21 million yuan - 2024A: 1,182.33 million yuan (22.37% YoY growth) - 2025E: 1,516.87 million yuan (28.30% YoY growth) - 2026E: 1,761.44 million yuan (16.12% YoY growth) - 2027E: 2,025.66 million yuan (15.00% YoY growth) [1] - Net profit attributable to shareholders is projected as follows: - 2023A: 116.16 million yuan - 2024A: 157.33 million yuan (35.44% YoY growth) - 2025E: 198.51 million yuan (26.18% YoY growth) - 2026E: 233.85 million yuan (17.80% YoY growth) - 2027E: 270.52 million yuan (15.68% YoY growth) [1] - The latest diluted EPS is projected to be: - 2023A: 0.27 yuan - 2024A: 0.37 yuan - 2025E: 0.46 yuan - 2026E: 0.55 yuan - 2027E: 0.63 yuan [1] Market Data Summary - The closing price of the stock is 13.50 yuan - The market capitalization is 5,773.84 million yuan - The price-to-earnings ratio (P/E) is projected to be 49.71 for 2023A, decreasing to 21.34 by 2027E [5][1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company demonstrated significant growth in Q1 2025, achieving revenue of 380 million yuan, a year-on-year increase of 39.2%, and a net profit attributable to shareholders of 50 million yuan, up 16.2% year-on-year [7] - The company is actively expanding its new product offerings and emerging sales channels, which are expected to contribute significantly to future growth [7] - The company maintains a positive outlook for profitability, with net profit forecasts for 2025-2027 expected to grow by 26.2%, 17.8%, and 15.7% respectively [7] Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 380 million yuan, with a breakdown showing meat products revenue at 354 million yuan, a 45% increase year-on-year [7] - The company’s gross profit margin for Q1 2025 was 18.2%, a decrease of 1.5 percentage points year-on-year, attributed to changes in channel structure [7] - The net profit margin for Q1 2025 was 13.1%, down 2.6 percentage points year-on-year [7] Revenue and Profit Forecast - The total revenue forecast for 2023A to 2027E is projected to grow from 966.21 million yuan in 2023A to 2,025.66 million yuan in 2027E, with a compound annual growth rate (CAGR) of approximately 15% [1] - The net profit attributable to shareholders is expected to increase from 116.16 million yuan in 2023A to 270.52 million yuan in 2027E, reflecting a strong growth trajectory [1] Market Position and Strategy - The company is focusing on new product launches and expanding into new sales channels, particularly in e-commerce and membership-based supermarkets, which are anticipated to drive future revenue growth [7] - The company’s strategy includes enhancing operational efficiency and leveraging scale effects to improve profitability [7]