Investment Rating - The report maintains a "Strong Buy" rating for the company [2][4] Core Views - The company experienced a revenue and net profit growth of 21.93% and 62.72% year-on-year in Q2 2025, exceeding expectations due to inventory reduction in Q1, successful new product promotions, and significant improvements in customized channels [1][3][4] - The company is expected to maintain high dividend payouts over the next three years, with projected earnings per share (EPS) of 0.59, 0.68, and 0.76 for 2025, 2026, and 2027 respectively, corresponding to a valuation of 21X for 2025 [4][5] Financial Performance - In H1 2025, the company achieved a total revenue of 1.391 billion yuan, a decrease of 5.24% year-on-year, and a net profit of 190 million yuan, down 23.01% year-on-year [3][5] - Q2 2025 saw a revenue of 749 million yuan, up 21.93% year-on-year, and a net profit of 115 million yuan, up 62.72% year-on-year, indicating a strong recovery in performance [3][4] - The company’s gross margin improved to 36.96% in Q2 2025, an increase of 3.63 percentage points year-on-year, driven by higher growth in high-margin products and a decrease in raw material costs [3][4] Business Segmentation - In Q2 2025, revenue from hot pot condiments, recipe-style condiments, and others was 255 million yuan, 462 million yuan, and 27 million yuan respectively, showing year-on-year growth of 28.95%, 17.82%, and 10.17% [3] - The company had 3,251 distributors as of H1 2025, an increase of 136 from Q1 2025, indicating an expansion in distribution channels [3] Market Outlook - The company anticipates continued recovery in its core business, although revenue growth may slow in H2 2025 due to high base effects from the previous year [4] - The company is focused on launching new products and expanding its market presence, particularly in the eastern region, which has shown rapid growth [3][4]