Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 20% in the stock price compared to the market benchmark index within the next six months [6][14]. Core Views - The company reported a revenue of 204 million yuan for H1 2025, representing an 8.63% year-on-year increase, and a net profit of 35 million yuan, which is a 22.64% increase year-on-year [2]. - The integration of the frozen baking business has contributed positively to revenue growth, with the new segment generating 10.49 million yuan in Q2 2025 [3][4]. - The company is focusing on expanding its baking business and sees it as a significant growth driver for the future, despite current market pressures [4]. Financial Performance - In Q2 2025, the company achieved a gross margin of 37.35%, with a slight decrease of 0.71 percentage points year-on-year, primarily due to the lower margin from the newly integrated frozen dough business [4]. - The total expenses decreased by 3.12 percentage points year-on-year in H1 2025, with significant reductions in marketing expenses contributing to improved profitability [4]. - The forecast for net profit from 2025 to 2027 is adjusted to 78 million, 93 million, and 108 million yuan, respectively, with growth rates of 22%, 18%, and 17% [5]. Revenue Breakdown - In Q2 2025, revenue from various product categories showed mixed results, with sauce products declining by 8.23%, while powdered seasonings and food additives grew by 10.84% and 77.96%, respectively [3]. - Revenue from different sales channels in Q2 2025 varied, with the restaurant channel growing by 3.18%, while direct e-commerce and retail channels saw significant declines of 65.97% and 46.86% [3]. Market Outlook - The company is strategically expanding its baking business, particularly focusing on pre-mixed baking powders, which are expected to become a key growth area [4]. - Despite challenges in the external market environment, the company is leveraging existing customer relationships and expanding its product offerings to drive steady growth [4].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has signed a share purchase agreement to acquire 70% of Jiangsu Dingwei Thai Food Co., Ltd. for 444.5 million yuan, which is expected to enhance its product and channel synergies [7] - The acquisition target complements the company's existing product lines and distribution channels, particularly in high-end hot pot ingredients and frozen baked goods [7] - The company's fundamentals are stabilizing, and its valuation has reached a bottom, with expectations of resilience in performance despite high base comparisons in 2024 [7] - The report forecasts net profits for 2024-2026 to be 1.43 billion, 1.62 billion, and 1.83 billion yuan respectively, with corresponding P/E ratios of 17, 15, and 13 [7] Financial Summary - Total revenue is projected to grow from 14.05 billion yuan in 2023 to 17.96 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 8.93% [1][8] - The net profit attributable to the parent company is expected to decrease by 3.04% in 2024, followed by growth of 13.28% and 12.61% in 2025 and 2026 respectively [1][8] - The latest diluted EPS is forecasted to be 5.04 yuan in 2024, 5.54 yuan in 2025, and 6.23 yuan in 2026 [1][8] - The company's asset-liability ratio is projected to decrease from 25.43% in 2023 to 23.51% in 2026, indicating improved financial stability [8]