Core Viewpoint - The company is expected to maintain steady growth in 2025, following a return to growth in 2024 after reforms, with revenue growth projected at +9.5% for 2024 and +8.1% for Q1 2025 [1] Group 1: Revenue Growth - The company operates in a resilient sector with essential demand for condiments, allowing for sustained growth [1] - There is potential for further penetration in lower-tier markets [1] - Core product categories such as soy sauce, oyster sauce, and seasoning sauces are expected to continue stable growth, with new products like cooking wine, vinegar, and compound seasonings also showing significant growth potential, projected at +16.8% for 2024 and +20.8% for Q1 2025 [1] Group 2: International Expansion - The company is advancing its overseas strategy steadily, which is expected to contribute to performance growth in the medium to long term [1] - The company is implementing a localized operational strategy to explore and seize growth opportunities in overseas markets [1] Group 3: Profitability - Cost advantages and improved supply chain efficiency are expected to lead to a continued increase in gross margin, with gross margins projected to rise by +2.3 and +2.7 percentage points for 2024 and Q1 2025, respectively [2] - The company has maintained good expense control, with net profit margins increasing by +0.7 and +1.5 percentage points for 2024 and Q1 2025, respectively [2] - Profit growth is anticipated to outpace revenue growth in 2025 [2] Group 4: Earnings Forecast - Revenue projections for 2025-2027 are estimated at 29.79 billion, 32.71 billion, and 35.76 billion yuan, representing year-on-year growth of +10.7%, +9.8%, and +9.3%, respectively [2] - Net profit forecasts for the same period are 7.28 billion, 8.06 billion, and 8.87 billion yuan, with year-on-year growth of +14.7%, +10.7%, and +10.1%, respectively [2]

Core Viewpoint - The company reported a revenue of 23.58 billion yuan for 2024, a year-on-year increase of 16.4%, and a net profit attributable to shareholders of 5.52 billion yuan, up 20.2% year-on-year, with a dividend payout ratio of 57.5%, an increase of 5.7 percentage points year-on-year [1] Group 1: Financial Performance - In Q4 2024, the company achieved a revenue of 4.51 billion yuan, a year-on-year increase of 4.9%, while the net profit attributable to shareholders was 770 million yuan, a decrease of 0.7% [1] - For Q1 2025, the company reported revenues and net profits of 9.15 billion yuan and 2.33 billion yuan, respectively, representing year-on-year increases of 10.4% and 12.8% [1] - The contract liabilities at the end of Q1 2025 were 3.67 billion yuan, an increase of 159 million yuan compared to the end of Q4 2024 [1] Group 2: Revenue Growth Analysis - The company focused on inventory control in Q4, leading to a stable but reduced growth rate. The revenue growth for the year was driven by the Year Original Series, Gujing Gongjiu, and Huanghelou, with increases of 17.3%, 11.2%, and 15.1% respectively [2] - The second half of 2024 saw a significant slowdown in growth rates for the Year Original Series, while Gujing Gongjiu benefited from the volume increase of products priced below 100 yuan [2] - Regional performance showed varied results, with North China, Central China, South China, and international markets growing by 7.4%, 17.8%, 11.2%, and 2.9% respectively for the year [2] Group 3: Profitability and Cash Flow - In Q1 2025, the gross profit margin decreased by 0.7 percentage points due to a shift in product mix, while the net profit margin increased by 0.5 percentage points [3] - The contract liabilities at the end of Q4 2024 increased by 81.6% to 3.52 billion yuan, indicating strong accumulation of resources for future growth [3] - The cash flow from operations showed a slight decline of 1.6% year-on-year in Q1 2025, but the contract liabilities increased by 4.5% compared to Q4 2024, aligning with revenue growth [3] Group 4: Strategic Focus - The company aims for stable growth in 2025 without setting specific growth targets, focusing on healthy operations and maintaining double-digit growth in Q1 2025 [4] - The product strategy includes enhancing the Gujing Gongjiu series and expanding the old porcelain and old glass products to drive additional revenue [4] - The company’s dividend payout ratio of 57.5% reflects its commitment to shareholder returns, enhancing its appeal to long-term investors [4] Group 5: Investment Outlook - The company is positioned for stable growth with a strong start in Q1 2025, and the valuation appears attractive with a projected EPS of 11.62 yuan for 2025, corresponding to a valuation of only 14 times [5] - The EPS forecasts for 2025 and 2026 have been adjusted to 11.62 and 12.98 yuan, respectively, with a new forecast for 2027 set at 14.53 yuan, maintaining a target price of 300 yuan [5]