Core Viewpoint - The report from Huafu Securities indicates that Qianwei Yangchu's net profit attributable to shareholders for the first half of the year is 36 million yuan, a year-on-year decrease of 39.67%, with Q2 showing a net profit of 14 million yuan, down 42.05% year-on-year [1] Revenue Breakdown - In H1 2025, the company achieved revenue in various categories: staple foods 413 million yuan, snacks 197 million yuan, baked goods 205 million yuan, and frozen prepared dishes and others 65 million yuan, with year-on-year changes of -9.10%, -6.57%, +11.02%, and +67.31% respectively [1] - The company has made significant progress in its baking and prepared dishes business, which has helped offset declines in staple foods and snacks [1] Distribution Channel Changes - The number of distributors decreased by 158 in the southern region and 204 in the northern region during the reporting period [1] - The company is focusing on supermarket adjustments and a big product strategy to amplify growth in baking and dishes [1] Valuation - The current stock price corresponds to a P/E ratio of 33, 28, and 24 times, maintaining a "buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 20% in stock price compared to the market benchmark within the next six months [12]. Core Views - The company has shown initial success in its strategic transformation, although it is currently facing short-term pressure while awaiting demand recovery [1]. - The company reported a revenue of 886 million yuan for the first half of 2025, a slight decrease of 0.72% year-on-year, and a net profit attributable to shareholders of 36 million yuan, down 39.67% year-on-year [1]. - The company is focusing on enhancing its supermarket channel and big product strategy to drive growth in baking and prepared dishes, countering the decline in traditional staple and snack categories [2]. Financial Performance Summary - For the first half of 2025, revenue from various product categories was as follows: staple foods 413 million yuan (-9.10%), snacks 197 million yuan (-6.57%), baked goods 205 million yuan (+11.02%), and frozen prepared dishes 65 million yuan (+67.31%) [1]. - The company's gross margin for Q2 2025 was 22.66%, a decrease of 2.29 percentage points year-on-year, attributed to intensified competition in the distribution channel and staple food category [2]. - The company has adjusted its profit forecasts for 2025-2027, now expecting net profits of 91 million yuan, 110 million yuan, and 125 million yuan respectively, reflecting year-on-year growth rates of 9%, 21%, and 14% [3]. Valuation Metrics - The current stock price corresponds to a P/E ratio of 33 for 2025, 28 for 2026, and 24 for 2027 [3]. - The company’s total assets are projected to grow from 2,322 million yuan in 2024 to 2,642 million yuan by 2027 [7]. - The report indicates an expected EPS of 0.92 yuan for 2025, increasing to 1.10 yuan in 2026 and 1.26 yuan in 2027 [3].

Investment Rating - The report maintains a "Cautious Accumulate" rating for the company, predicting a relative increase of 0% to 5% compared to the CSI 300 index over the next six months [14]. Core Views - The company reported a revenue of 1.868 billion yuan for 2024, a year-on-year decrease of 1.71%, while the net profit attributable to the parent company decreased by 32.57% to 0.83 billion yuan [8][11]. - The company experienced negative sales growth in the second half of 2024, primarily due to a decline in sales through the distribution model and reduced sales in the northern market [8]. - The company’s gross margin slightly decreased to 23.38% in 2024, with a notable decline in direct sales margin, indicating pressure on profit margins [8][9]. - The frozen prepared dishes category and online sales showed significant growth, with frozen dishes achieving a sales increase of 273.39% to 0.142 billion yuan in 2024 [9]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 1.868 billion yuan, with a net profit of 0.84 billion yuan, and earnings per share of 0.87 yuan [8][11]. - The first quarter of 2025 saw a revenue of 0.47 billion yuan, a year-on-year increase of 1.5%, but the net profit decreased by 37.71% [8]. Sales and Market Dynamics - Direct sales in 2024 amounted to 0.809 billion yuan, a year-on-year increase of 4.34%, while distribution sales were 1.051 billion yuan, a decrease of 6.04% [8]. - The number of major clients increased by 8.81% to 173 by the end of 2024, providing a stable foundation for sales [8]. Profitability and Margins - The overall gross margin for 2024 was 23.38%, with a direct sales margin of 20.02% and a distribution margin of 25.97% [8][9]. - The gross margin for the first quarter of 2025 further declined to 24.42% [9]. Growth Areas - The frozen prepared dishes category recorded a sales increase of 273.39%, contributing to a gross margin of 14.87% [9]. - Online sales reached 0.042 billion yuan in 2024, a year-on-year increase of 96.14%, with a high gross margin of 39.04% [9].