Summary of Yankershop Food Conference Call Company Overview - **Company**: Yankershop Food (002847.SZ) - **Industry**: Snack Food Industry Key Takeaways Long-term Ambition - Yankershop aims to become a world-class snack brand within the next 5-10 years, focusing on Chinese-style flavor snacks such as konjac and tofu, with aspirations to achieve global brand recognition similar to iconic brands like Oreo [1][9] Growth Curves 1. **Core Growth Curve**: - Focus on Chinese flavor snacks, particularly through the "Da Mo Wang" brand and konjac & tofu products, with konjac projected to reach Rmb30-50 billion in retail sales [1][9] 2. **Secondary Growth Driver**: - High-protein diet products, including eggs and quail eggs, with expected sales growth of 30% in 2025 [9][10] 3. **Health-Conscious Products**: - Targeting health-conscious consumers with products like dried fruits [9][10] Operational Outlook for 2026 - **Category Expansion**: - SKUs will expand from konjac-only to include tofu [2] - **Raw Material Cost Reduction**: - Prices expected to fall to Rmb40-50k/ton from Rmb70-80k/ton in the next 2-3 years, aiding in cost reductions [2] - **Net Profit Margin (NPM) Improvement**: - Expected improvements driven by favorable product mix, production efficiency, and channel structure optimization, despite increased marketing expenditures [2] Marketing and Execution Strategies - **Brand Ambassador**: - Appointment of Wang Yibo to enhance brand awareness for "Da Mo Wang" [11] - **Online Marketing**: - Engagement with over 10,000 top streamers on Douyin to boost consumer awareness [11] - **Distributor Optimization**: - Focus on large partners and elimination of inefficient distributors, currently maintaining less than 1,000 distributors [11] Channel Strategies - **Wholesales-Packaged Channel**: - Fastest growing channel, with expectations for konjac products to constitute 70% of sales in this channel by 2025 [14] - **E-commerce Optimization**: - Streamlining product structure to improve profit margins and expanding online retail points by 100K-200K annually [14] International Expansion Plans - **Global Market Entry**: - Plans for international expansion of konjac, quail eggs, and dried mango, with M&A as a primary strategy for entering overseas markets [10][11] - **Supply Chain Focus**: - Emphasis on Southeast Asia supply chain for capacity ramp-up during international expansion [10] Financial Outlook - **Revenue Projections**: - Expected revenue growth from Rmb5.3 billion in 2024 to Rmb7.6 billion by 2027 [17] - **CAPEX Plans**: - Rmb200 million allocated for production scale-up and automation in 2026 [15] - **Price Target**: - 12-month price target set at Rmb87, representing a 25.2% upside from the current price of Rmb69.47 [17] Risks - **Competitive Landscape**: - Increased competition in the snacking industry, particularly from private labels [16] - **Market Dynamics**: - Potential slower-than-expected pace of snack discounters opening and higher raw material costs [16] Conclusion Yankershop Food is positioning itself for significant growth in the snack food industry through strategic product development, marketing initiatives, and international expansion plans, while also addressing potential risks associated with competition and market dynamics.