Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Insights - The company's overall performance in Q1 2025 is subdued, but the key growth driver for 2025 is expected to be offline distribution, with a focus on increasing the proportion of daily sales products and sales performance [5]. - The company achieved revenue of 10.622 billion yuan in 2024, representing a year-on-year growth of 49.30%, and a net profit attributable to shareholders of 408 million yuan, up 85.51% year-on-year [5]. - In Q1 2025, the company reported revenue of 3.723 billion yuan, a slight increase of 2.13% year-on-year, but net profit decreased by 22.46% year-on-year to 239 million yuan [5]. Revenue Breakdown - Online channels, particularly through Douyin, saw rapid growth, with 2024 online revenue reaching 7.407 billion yuan, a year-on-year increase of 49.60%, accounting for approximately 70% of total revenue [2]. - Offline distribution also expanded significantly, with offline channel revenue reaching 3.215 billion yuan in 2024, a year-on-year growth of 48.62% [2]. - The main brand, Three Squirrels, generated revenue of 9.825 billion yuan in 2024, reflecting a year-on-year growth of 50.57% [3]. Profitability Analysis - The gross margin for 2024 was 24.25%, an increase of 0.92 percentage points year-on-year, attributed to scale effects and an increase in self-produced products [4]. - The net profit margin for 2024 was 3.84%, up 0.75 percentage points year-on-year [4]. - In Q1 2025, the gross margin was 26.74%, showing stability despite a slight decrease of 0.66 percentage points year-on-year [4]. Future Projections - The company is expected to achieve revenues of 13.522 billion yuan, 16.972 billion yuan, and 20.160 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 27.3%, 25.52%, and 18.78% [5][12]. - The projected net profit for 2025 is 450 million yuan, with a year-on-year growth of 10.41% [5][12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 3.72 billion yuan in Q1 2025, representing a year-on-year increase of 2.1%. However, the net profit attributable to shareholders decreased by 22.4% year-on-year to 230 million yuan [7] - The offline distribution channels have begun to ramp up, with a total growth of 16.2% when combining Q4 2024 and Q1 2025. In Q1 2025, online channels accounted for approximately 70% of revenue, while offline distribution and supermarkets made up nearly 30% [7] - The company is in the phase of introducing distribution, which has led to some pressure on expenses. The gross profit margin for Q1 2025 was 26.7%, a decrease of 0.7 percentage points year-on-year [7] - The company expects to improve net profit margins through increased sales of daily consumer goods and dairy beverages in offline distribution, as well as a gradual increase in the self-production ratio of nuts [7] - The profit forecast remains unchanged, with expected net profits for 2025-2027 at 4.95 billion, 7.11 billion, and 11.11 billion yuan, respectively, reflecting year-on-year growth rates of 21%, 44%, and 56% [7] Financial Summary - Total revenue is projected to reach 10.62 billion yuan in 2024, with a year-on-year growth of 49.3%, and further increase to 20.41 billion yuan by 2027 [1] - The net profit attributable to shareholders is expected to grow from 407.74 million yuan in 2024 to 1.11 billion yuan in 2027, with a year-on-year growth of 85.51% in 2024 [1] - The latest diluted EPS is forecasted to be 1.02 yuan in 2024, increasing to 2.76 yuan by 2027 [1]