Company Overview - Chengde Lolo reported a closing price of 8.75 yuan on July 31, down 0.17 yuan or 1.91% from the previous trading day [1] - The trading volume on that day was 161,285 hands, with a transaction amount of 142 million yuan [1] - The company operates in the food and beverage sector, primarily engaged in the production and sale of plant protein beverages, with almond milk products accounting for over 96% of its revenue [1] - Established in 1997, Chengde Lolo was one of the first beverage companies to be listed on the Shenzhen Stock Exchange [1] Management Changes - On July 28, the company announced the resignation of General Manager Liang Qichao for personal reasons, with Deputy General Manager Ding Xingxian taking over the position [1] Financial Performance - For the first quarter of 2025, the company reported revenue of 1.002 billion yuan, a year-on-year decrease of 18.36% [1] - The net profit for the same period was 215 million yuan, down 12.53% year-on-year [1] Product Development - The company recently launched a new herbal product series, including loquat and pear drink, and dried tangerine peel and black plum drink [1]

Investment Rating - The report maintains a "Buy" rating for the company [1][4][7] Core Views - The company demonstrated stable overall performance in its financial results for 2024 and Q1 2025, benefiting from cost reductions and improved gross margins [1][4][7] - The company reported a revenue of RMB 3.29 billion in 2024, a year-on-year increase of 11.3%, and a net profit of RMB 666 million, up 4.4% year-on-year [4][6][9] - The report highlights the significant impact of the Spring Festival timing on quarterly performance, with a notable decline in Q1 2025 compared to Q1 2024 [1][4][7] Financial Performance Summary - The company’s revenue and net profit growth rates for 2024 were 11.3% and 4.4% respectively, with Q4 2024 and Q1 2025 combined showing a revenue decline of 0.8% but a net profit increase of 4.9% [4][7][9] - The gross margin improved significantly in Q1 2025, reaching 48.1%, an increase of 4.4 percentage points year-on-year [9] - The core product, almond milk, generated RMB 3.19 billion in revenue in 2024, accounting for 97% of total revenue, with a year-on-year growth of 11.4% [7][9] Market and Shareholder Information - The company has a total market capitalization of approximately RMB 10.44 billion, with major shareholder Wanxiang Agricultural Group holding 41.61% [4][6] - The average daily trading volume over the past three months was RMB 123.73 million [4] Future Outlook - The company is expected to benefit from new product launches in 2025, which are anticipated to contribute positively to revenue growth [1][4][7] - The report projects earnings per share (EPS) for 2025 to be RMB 0.67, reflecting a year-on-year increase of 5.6% [6][10]