Core Viewpoint - The company reported a significant decline in revenue and net profit for the first three quarters of 2025, indicating operational challenges and a need for strategic adjustments [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 3.156 billion, a year-on-year decrease of 20.01%, and a net profit of 380 million, down 34.07% [1]. - In Q3 2025, the company recorded revenue of 1.025 billion, a decline of 22.8%, with a net profit of 123 million, down 45.7% [1]. - The adjusted profit forecasts for 2025-2027 are 513 million, 638 million, and 724 million, reflecting year-on-year changes of -42.6%, 24.5%, and 13.5% respectively [1]. Business Segment Analysis - The seasoning business reported revenue of 3.107 billion for the first three quarters of 2025, a decrease of 18.4%, with a net profit of 367 million, down 34.13% [2]. - In Q3 2025, the seasoning business generated revenue of 1.009 billion, a decline of 19.37%, and a net profit of 120 million, down 41.93% [2]. - Revenue breakdown for Q3 includes soy sauce at 599 million, chicken essence at 137 million, cooking oil at 89 million, and others at 134 million, with respective year-on-year declines [2]. Cost and Margin Analysis - The gross margin for the first three quarters of 2025 was 39.7%, an increase of 2.26 percentage points year-on-year, primarily due to lower raw material costs [3]. - The selling and administrative expense ratios were approximately 14% and 7.69%, respectively, both showing increases compared to the previous year [3]. - The net profit margin for the first three quarters was 11.81%, down 4.5 percentage points year-on-year, attributed to increased sales expenses from channel adjustments and intensified competition [3]. Market Position and Valuation - The company's current market valuation corresponds to a PE ratio of 28x, 22x, and 20x for 2025-2027, which is slightly below the average PE of 29.2x for comparable companies [1]. - The investment rating has been adjusted to "Accumulate" due to the anticipated recovery in channel performance and strategic adjustments [1].

Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Insights - The company reported a Q2 revenue increase of 9.7% year-on-year, but a significant profit decline of 88.2% due to high raw material costs and increased expenses from structural adjustments [1][7]. - The company expects revenue and profit to improve in the second half of the year as costs normalize, projecting net profits of 510 million, 730 million, and 800 million for 2025-2027, with EPS of 1.01, 1.43, and 1.58 respectively [1][7]. Financial Performance - For H1 2025, the company achieved revenues of 2.75 billion and a net profit of 90 million, reflecting a year-on-year decline of 5.0% and 73.7% respectively [7]. - The revenue breakdown shows that sunflower seeds and nuts faced pressure, while e-commerce and overseas sales continued to grow [7]. - The gross margin for sunflower seeds and nuts was 20.9% and 14.8%, down 7.7 percentage points and 14.0 percentage points year-on-year [7]. Cost and Expense Analysis - The Q2 gross margin was 21.4%, a decrease of 3.6 percentage points year-on-year, primarily due to high raw material costs [7]. - The company’s selling, administrative, and R&D expenses increased, with selling expenses rising due to investments in new product development and channel expansion [7]. Market Position and Future Outlook - The company aims to maintain its revenue growth target for the year, with expectations of cost reductions as high-priced raw materials are used up by Q3 [7]. - The report indicates that the company is actively expanding new channels, including group purchasing and restaurant partnerships [7].