Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company's total revenue for H1 2025 is 1.318 billion yuan, a year-on-year decrease of 17.07%, with a net profit attributable to the parent company of 173 million yuan, down 30.81% year-on-year [2][4] - The decline in revenue and profit is attributed to negative public sentiment impacting sales [5] - The company is expected to return to a growth trajectory in H2 2025, with plans for product adjustments to reshape brand positioning [7] Revenue Breakdown - For H1 2025, revenue from soy sauce is 839 million yuan (down 16.09% year-on-year), vinegar is 159 million yuan (down 21.51%), and other condiments is 299 million yuan (down 16.05%) [5] - Online sales for H1 2025 are 198 million yuan (down 29.2%), while offline sales are 1.099 billion yuan (down 14.06%) [5] - Revenue by region shows a significant decline in the northern region, with H1 revenue of 211 million yuan (down 30.47%) [5] Profitability Analysis - The net profit margin for H1 2025 decreased by 2.61 percentage points to 13.16%, while the gross margin increased by 0.97 percentage points to 36.58% [6] - In Q2 2025, the net profit margin dropped significantly to 2.62%, with a gross margin of 32.64% [6] - Increased marketing and promotional expenses in Q2 2025 have put pressure on profitability [6] Future Outlook - The company is positioned to benefit from the health-oriented trend in the condiment industry, with expectations of a recovery in sales following the public sentiment issues [7] - A new production line with an annual capacity of 600,000 tons has been launched, increasing automation to over 80% and total capacity to 1.2 million tons [7] - Projected net profits for 2025 and 2026 are 432 million yuan and 543 million yuan, respectively, with corresponding PE ratios of approximately 28 and 22 times [7]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 22.50 [1]. Core Views - The company's performance in H1 2025 shows a revenue of RMB 2.13 billion and a net profit attributable to the parent company of RMB 260 million, reflecting a year-on-year decline of 18.6% and 26.6% respectively. The second quarter also saw a revenue of RMB 1.03 billion, down 9.1% year-on-year [5][6]. - The company is focusing on channel optimization and product innovation, particularly enhancing the coverage of its main brand in non-core markets and increasing the proportion of low-salt new products. This is expected to improve operations in the second half of the year [5][8]. Financial Performance Summary - For the fiscal year 2024, the projected revenue is RMB 5.519 billion, with a year-on-year growth of 7.39%. However, for 2025, a decline of 5.62% is expected, followed by a recovery in 2026 and 2027 with growth rates of 10.30% and 9.34% respectively [4]. - The net profit attributable to the parent company is forecasted to be RMB 893.07 million in 2024, decreasing to RMB 702.96 million in 2025, but expected to rebound to RMB 880.86 million in 2026 and RMB 1 billion in 2027 [4]. - The earnings per share (EPS) is projected to be RMB 1.15 in 2024, dropping to RMB 0.90 in 2025, and then recovering to RMB 1.13 and RMB 1.32 in 2026 and 2027 respectively [4]. Market and Competitive Position - The company is currently undergoing a channel reform, which is in a transitional phase. The focus remains on optimizing channels and adjusting pricing strategies to restore growth [7][8]. - The gross margin for H1 2025 was 39.0%, an increase of 2.4 percentage points year-on-year, primarily due to lower raw material costs. However, increased sales and management expenses have pressured short-term profitability [7][8].

Core Viewpoint - The company reported a strong financial performance for 2024, with revenue and net profit showing significant year-on-year growth, indicating a successful recovery and positive outlook for future growth [1][2][4]. Financial Performance - In 2024, the company achieved revenue of 26.901 billion yuan, a year-on-year increase of 9.5%, and a net profit attributable to shareholders of 6.344 billion yuan, up 12.8% year-on-year [1]. - The fourth quarter of 2024 saw revenue of 6.502 billion yuan, reflecting a 10.03% increase year-on-year, and a net profit of 1.529 billion yuan, which is a 17.82% increase year-on-year [1]. Product Performance - Revenue from various product categories in 2024 included soy sauce (13.758 billion yuan, +8.9%), seasoning sauce (2.669 billion yuan, +10.0%), oyster sauce (4.615 billion yuan, +8.6%), and other products (4.086 billion yuan, +16.8%) [2]. - The company experienced a slight decline in prices for soy sauce (-2.5%) and seasoning sauce (-3.1%), while oyster sauce prices increased by 0.4% [2]. Cost and Efficiency - The company's gross margin improved by 2.3 percentage points to 37.0% in 2024, primarily due to lower raw material costs and ongoing internal efficiency improvements [3]. - The net profit margin increased by 0.7 percentage points to 23.6% for the year, with the fourth quarter net profit margin rising by 1.6 percentage points to 23.5% [3]. Future Outlook - The company aims to maintain double-digit growth in revenue and profit for 2025, with projected revenues of 29.56 billion yuan, 32.34 billion yuan, and 35.34 billion yuan for 2025-2027, representing year-on-year growth rates of 9.9%, 9.4%, and 9.3% respectively [4]. - The forecasted net profit for 2025 is 7.02 billion yuan, reflecting a 10.6% year-on-year increase, with a price-to-earnings ratio of 32 [4].