Investment Rating - The investment rating for the company is "Outperform the Market" [5][30] Core Views - The company's revenue for 2024 is projected to be CNY 238.87 billion, a decrease of 5.03% year-on-year, while the net profit attributable to shareholders is expected to be CNY 2.50 billion, down 12.14% year-on-year. However, the first quarter of 2025 shows a positive trend with a revenue increase of 3.15% year-on-year to CNY 59.08 billion and a net profit increase of 11.24% year-on-year to CNY 0.98 billion [8][12] - The company is actively expanding into the health sector, establishing a dedicated department for this purpose, and has launched high-end products such as glycerol diester oil (DAG) and low GI products [2][12] - The company anticipates a moderate increase in raw material prices in 2025, which is expected to benefit its performance as the market recovers [8][12] Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of CNY 238.87 billion, a decrease of 5.03% year-on-year, with a total profit of CNY 3.66 billion, an increase of 7.05% year-on-year. The net profit attributable to shareholders was CNY 2.50 billion, down 12.14% year-on-year [8][12] - The first quarter of 2025 showed a revenue increase of 3.15% year-on-year to CNY 59.08 billion and a net profit increase of 11.24% year-on-year to CNY 0.98 billion [8][12] Business Segments - The kitchen food business saw a total sales volume of 24.07 million tons in 2024, an increase of 4% year-on-year, although revenue decreased by 6% to CNY 147.6 billion due to falling raw material prices [2][12] - The feed raw materials and oil technology business experienced a sales volume of 29.65 million tons in 2024, a 10% increase year-on-year, with revenue of CNY 91.6 billion, down 10% year-on-year [3][15] Profitability and Forecasts - The company expects net profits for 2025-2027 to be CNY 3.14 billion, CNY 3.65 billion, and CNY 3.91 billion respectively, with corresponding P/E ratios of 55, 47, and 44 [3][25] - The gross margin improved to 5.35% in 2024, while the net margin slightly decreased to 1.03% [19][24]

Financial Performance - In 2024, the company achieved a revenue of CNY 238.87 billion, a decrease of 5.03% compared to 2023 [14] - The total profit amounted to CNY 3.66 billion, reflecting a growth of 7.05% year-on-year [15] - Net profit attributable to shareholders was CNY 2.50 billion, down 12.14% from the previous year [14] - The net profit after excluding non-recurring items was CNY 972.27 million, a decline of 26.42% [14] Market Insights - The decline in profits in the kitchen food retail channel was influenced by the prices of rice and wheat, despite a positive impact from falling soybean prices [2][3] - The company anticipates improved performance across various segments in 2025, driven by increased consumer confidence in the Chinese economy [3] Business Development - The central kitchen business is progressing well, with plans for further investment as the domestic economy improves [3][11] - The company is focusing on high-end product development, including health-oriented products like DAG oil and low GI products, which are expected to perform well in the market [3][11] Distribution and Sales Channels - The number of distributors increased by approximately 8% year-on-year, attributed to ongoing channel expansion efforts [3] - The company is leveraging both traditional and new retail channels, including e-commerce and social commerce, to enhance market penetration [7][8] Financial Ratios and Cash Flow - As of December 31, 2024, the total assets were CNY 225.06 billion, down 5.64% from the previous year [18] - The net cash flow from operating activities decreased by 66.53% to CNY 4.99 billion [19] - The current ratio improved slightly to 1.18, while the quick ratio decreased to 0.72 [20]