Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - Generation Z is becoming the main consumer force in the snack industry, with a significant impact on market dynamics and brand strategies [10][9] - The consumption habits of Generation Z reflect a strong preference for innovative flavors and health-conscious options, leading to a dual trend of "healthification" and "stimulation" in product development [11][12] - The report emphasizes the importance of packaging aesthetics and social attributes, as Generation Z is willing to pay more for visually appealing packaging [29][30] Summary by Sections Generation Z - Snack Consumption Powerhouse - Generation Z has a monthly disposable income that is 49.36% higher than the national average, indicating strong consumption potential [5] - Over 80% of Generation Z spends more than 400 RMB on snacks and beverages monthly, with significant portions spending over 800 RMB [7][8] Snack Flavor Preference Trends - There is a noticeable shift towards healthier options, with a focus on low-sugar and low-salt products due to health awareness [16][17] - Despite health concerns, there is a strong demand for bold flavors, such as spicy snacks, which are popular among Generation Z [19][20] - Generation Z shows a strong desire for diverse and unique flavors, driving innovation in the snack market [21][22] Snack Flavor Innovation Cases - Brands like Jin Zai Xiao Yu have successfully introduced multiple flavors to cater to diverse preferences, achieving significant market success [25][26] - The industry is witnessing a blend of health and stimulation trends, with brands innovating to meet these dual demands [27] Generation Z's Packaging Requirements - High aesthetic appeal in packaging is crucial, as Generation Z prioritizes visual attractiveness when selecting snacks [29][30] - Practical and convenient packaging is also essential, with products like Xiao Xian Dun's instant bird's nest addressing consumer needs for ease of use [31][32] Social Attributes of Snack Packaging - Generation Z enjoys sharing their snack experiences on social media, making packaging with social currency attributes more appealing [35][36] - Unique packaging designs can spark conversations and enhance brand visibility through social sharing [39] Strategies for Snack Brands to Cater to Generation Z - Brands should focus on health-related innovations and functional ingredients to address Generation Z's health concerns [60][61] - Packaging design should align with Generation Z's aesthetic preferences while also being practical [62][63] - Engaging marketing strategies, including social media interactions and influencer partnerships, are vital for brand success [66] Future Trends in Snack Consumption - Future innovations will likely emphasize the combination of health and taste, with brands reducing unhealthy ingredients while introducing unique flavors [69] - Packaging will evolve towards sustainability and personalization, reflecting Generation Z's values [73][77] - The competitive landscape will intensify as new brands emerge to meet the diverse demands of Generation Z [81][82]

Core Viewpoint - The company reported a revenue of 600 million yuan in Q1 2025, representing a year-on-year increase of 10.3%, while the net profit attributable to shareholders decreased by 8.2% to 70 million yuan, indicating pressure on profitability despite revenue growth [1][2]. Product Dimension - The company focuses on core product categories such as fish, eggs, and beans, aiming to create healthier snack foods and continuously upgrading product quality [1]. - The brand recognition of the company's small fish products is strong, with current promotions for deep-sea anchovies expected to enhance brand strength [1]. - In the quail egg sector, the company leads the industry with its soft-boiled quail eggs, driving structural upgrades in the market [1]. - The company differentiates its bean products through short-shelf-life bean curd, establishing a competitive edge [1]. Channel Dimension - The company has significantly enhanced its sales system, upgrading traditional channels and focusing on high-quality store selections, display enhancements, and promotional investments [1]. - The company has expanded its collaboration with over 100 snack systems, covering more than 35,000 terminals, and is exporting to over 40 overseas markets [1]. Financial Performance - The net profit margin decreased by 2.3 percentage points to 11.3% due to cost pressures and reduced foreign exchange gains [2]. - The gross profit margin slightly decreased by 0.1 percentage points to 29.9%, while the sales expense ratio increased by 0.2 percentage points to 13.4% [2]. - The company is actively developing anchovy resources globally to strengthen its supply chain and ensure core raw material supply [2]. Growth Forecast - The company is expected to achieve revenue growth of 17.7%, 14.7%, and 13.3% from 2025 to 2027, reaching 2.84 billion, 3.26 billion, and 3.69 billion yuan respectively [2]. - The net profit attributable to shareholders is projected to grow by 14.1%, 16.4%, and 13.7% during the same period, reaching 330 million, 390 million, and 440 million yuan respectively [2]. - The company maintains a "buy" rating based on its product expansion and channel growth potential [2].

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company achieved a revenue of 600 million yuan in Q1 2025, representing a year-on-year increase of 10.3%, despite a 12-day shift in the Spring Festival [1]. - The decline in net profit by 8.2% year-on-year is attributed to cost pressures and reduced foreign exchange gains, leading to a net profit margin decrease of 2.3 percentage points to 11.3% [2]. - The company is focusing on enhancing its core product categories and expanding its market channels, which is expected to support continued strong performance [2]. Financial Performance - Revenue projections for 2025-2027 are expected to grow by 17.7%, 14.7%, and 13.3%, reaching 2.84 billion, 3.26 billion, and 3.69 billion yuan respectively [3]. - The net profit for the same period is projected to increase by 14.1%, 16.4%, and 13.7%, reaching 330 million, 390 million, and 440 million yuan respectively [3]. - The company’s gross margin is forecasted to be 29.9% in Q1 2025, with a slight year-on-year decrease of 0.1 percentage points [2]. Product and Channel Strategy - The company is focusing on health-oriented snack foods in the fish, egg, and bean categories, with a strong emphasis on product quality upgrades [1]. - The company has expanded its sales system significantly, enhancing traditional channel operations and entering over 40 overseas markets [1][2]. - The company is actively promoting deep-sea anchovies and leading the quail egg industry with its soft-boiled quail eggs, aiming to strengthen brand recognition [1].