Group 1: Report Overview - The report is about a research on Huanlejia in the food and beverage industry on September 1, 2025 [1][2][16] Group 2: Research Participants - Participating research institutions include CITIC Securities, Dymon Asia, Capital Group, Point 72, Harding Loevner, etc [2][17] Group 3: Core Views - The company adheres to high - quality production of fruit cans and coconut water products, with a focus on product R & D, packaging diversification, and brand renewal [25] - In the first half of 2025, the procurement unit price of raw coconut materials increased by over 30% year - on - year [26] - The company is expanding emerging channels such as snack franchise chains, with the snack franchise chain channel achieving an operating income of 8.78 million yuan in the first half of 2025 [27] - The company has coconut processing projects in Vietnam and plans to invest up to about 21 million US dollars in an Indonesian project, which is expected to enhance the company's supply chain competitiveness [28][29] - The company's semi - annual sales expenses decreased in 2025, and it will continue to optimize cost input [30] Group 4: Research Details 1. Research Basic Information - Research object: Huanlejia; Industry: Food and Beverage; Reception time: 2025 - 09 - 01; Company receptionists: Vice President and Board Secretary Fan Chonglan, Securities Affairs Representative Sun Jiatong, Investment Manager Cai Shuting [16] 2. Detailed Research Institutions - Institutions include CITIC Securities (securities company), Dymon Asia, Capital Group, Point 72, Harding Loevner, Golden Nest, Seahawk, Alpine Fund, Taikang Asset (insurance asset management company), Hua'an Zhongxin, Gao Yi Asset (asset management company), Dongwu Securities Self - operation, CLSA (securities company) [17][18] 3. Main Content Data - **Product Development Plan**: The company focuses on portable, casual, and ingredient - diversified small - package fruit cans and has renewed the coconut water brand. It has also launched new coconut water products to expand the product price range [25] - **Raw Material Cost**: In the first half of 2025, the procurement unit price of raw coconut materials increased by over 30% year - on - year due to increased market demand and higher quality requirements [26] - **Channel Expansion**: The company is expanding snack franchise chains, with the channel achieving an operating income of 8.78 million yuan in the first half of 2025. It also plans to explore opportunities in membership stores and B - end catering channels [27] - **Overseas Project Progress**: The Vietnam coconut processing project achieved an operating income of 3.88 million yuan in the first half of 2025. The company plans to invest in an Indonesian project, and the wholly - owned subsidiary was established on August 13, 2025 [28][29] - **Sales Expense Input**: The company's semi - annual sales expenses decreased in 2025, and it will optimize cost input [30]

Core Viewpoint - The company is adapting to changes in sales channels and consumer demands by expanding into emerging channels such as snack specialty chains, with a focus on fruit canned products and coconut juice beverages [1] Group 1 - The company reported that its canned fruit products, including yellow peach and orange canned goods, have entered leading and mid-tier snack specialty chains [1] - In the first half of 2025, the revenue from this channel reached 87.82 million yuan [1] - The company aims to actively promote new product development and partnerships to enhance sales scale in response to market demand [1]

Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [2]. Core Insights - The company is experiencing pressure on traditional channels while making progress in new business areas. The first half of 2025 saw a revenue decline of 20.9% year-on-year, with a net profit drop of 77.5% [4]. - Weak demand and intensified competition are impacting the main business, but emerging businesses are showing positive developments. Beverage revenue fell by 22.1%, while canned food revenue decreased by 24.0% [4]. - The company is preparing for a seasonal sales boost in Q4 2025, focusing on product display and channel expansion [4]. Financial Performance Summary - **Revenue Forecasts**: - 2024A: 1854.78 million - 2025E: 1576.56 million - 2026E: 1612.82 million - 2027E: 1695.07 million - Revenue growth rates are projected at -3.53% for 2024, -15.00% for 2025, 2.30% for 2026, and 5.10% for 2027 [2][5]. - **Net Profit Forecasts**: - 2024A: 147.38 million - 2025E: 85.40 million - 2026E: 103.36 million - 2027E: 129.23 million - Profit growth rates are expected to be -47.06% for 2024, -42.05% for 2025, 21.02% for 2026, and 25.03% for 2027 [2][5]. - **Gross Margin**: - 2024A: 34.00% - 2025E: 29.80% - 2026E: 30.80% - 2027E: 31.80% [2][5]. - **Earnings Per Share (EPS)**: - 2024A: 0.34 - 2025E: 0.20 - 2026E: 0.24 - 2027E: 0.30 [2][5]. - **Price-to-Earnings (PE) Ratio**: - 2024A: 51.65 - 2025E: 89.13 - 2026E: 73.65 - 2027E: 58.90 [2][5].

Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of 748 million CNY and a net profit of 18.55 million CNY, with a gross margin of 29.52% [2] - The increase in production costs amounted to 15.92 million CNY due to fluctuations in raw material prices [4] Group 2: Marketing and Sales Strategy - The company is focusing on marketing reforms and optimizing its marketing system to enhance sales channels [3] - In the first half of 2025, the new snack specialty chain channels generated a revenue of 87.82 million CNY [6] Group 3: Product Development and Innovation - The company is developing new products based on consumer dietary habits, focusing on coconut juice and fruit canned products [3] - The company has launched new products, including coconut water and coconut fruit drinks, to expand its product range [6] Group 4: International Expansion - The company has implemented a coconut processing project in Vietnam, generating a revenue of 38.79 million CNY in the first half of 2025 [6] - A new coconut processing project in Indonesia is planned with an investment of up to 3.40 trillion IDR (approximately 21 million USD) [6] Group 5: Cost Management - The company plans to adjust the selling prices of certain coconut juice products starting July 1, 2025, due to increased raw material costs [4] - The company will continue to optimize its sales expenses and strategies based on market conditions [7]

Core Insights - The company reported a revenue of 748 million yuan and a net profit attributable to shareholders of 18.55 million yuan for the first half of 2025 [1] - The company is focusing on two core segments: fruit canned goods and coconut-based beverages, while implementing marketing reforms and optimizing channel strategies [1][2] - The company is expanding into emerging channels such as snack specialty chains and has begun selling products like peach and orange canned goods in major snack retail stores [1] Group 1 - The company is committed to proactive changes in response to industry competition and market environment shifts [1] - The company is enhancing its operational efficiency and management effectiveness through a restructured organizational framework and performance system [1] - The company is leveraging its coconut processing project in Vietnam to support its diversified business layout [1] Group 2 - In the second half of the year, the company plans to improve its overall operational quality by deepening marketing reforms and optimizing product, channel, and sales strategies [2] - The company aims to develop new products based on consumer dietary habits, focusing on taste, health, and functionality, while also preparing for seasonal sales peaks [2] - The company is actively pursuing new product development and partnerships to meet the demands of the snack specialty system market and is steadily advancing its overseas coconut processing project [2]

Company Insights - Company has showcased its latest progress in marketing reform, channel expansion, and brand innovation while releasing its semi-annual report [1] - The company focuses on two core segments: canned fruits and coconut-based beverages, and is committed to enhancing operational efficiency and management effectiveness through a reformed marketing system [1] - The company has entered emerging channels such as snack specialty chains, with products like peach and orange canned fruits and coconut juice now available in leading snack chain stores [1] - The company is leveraging its coconut processing project in Vietnam to support its diversified business layout [1] - New product launches include reduced-sugar canned fruits and coconut water beverages, with a focus on promoting gift beverage markets during festive seasons [1] Industry Insights - The global plant-based beverage market reached $26.8 billion in 2022 and is expected to exceed $70 billion by 2030, with a compound annual growth rate of over 13% [2] - The coconut-based beverage segment is one of the fastest-growing categories, benefiting from trends towards natural, low-sugar, and health-conscious consumption [2] - The company is exploring brand rejuvenation by launching cross-industry collaboration products with popular IPs, enhancing consumer recognition and emotional connection [2] - Industry experts believe that the company's long-term focus on canned fruits and coconut-based beverages, along with diversified channel strategies and brand innovation, positions it for structural breakthroughs during high growth cycles [2]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, indicating challenges in its business operations and the need for strategic changes [1][2][3]. Financial Performance - In 25H1, the company achieved operating revenue of 748 million yuan, a year-on-year decrease of 20.90%, and a net profit attributable to shareholders of 19 million yuan, down 77.50% [1]. - For 25Q2, the operating revenue was 299 million yuan, a decline of 24.23%, with a net profit of -16 million yuan, reflecting a drastic year-on-year drop of 4367.91% [1]. - The company's gross profit margin and net profit margin for 25H1 were 29.52% and 2.48%, respectively, both showing a decline compared to the previous year [3]. Business Segment Analysis - Beverage business revenue in 25H1 was 417 million yuan, down 22%, with coconut juice contributing 362 million yuan and other beverages 55 million yuan, down 20% and 34% respectively [2]. - Canned goods revenue was 289 million yuan, a decrease of 24%, with fruit cans generating 276 million yuan, also down 24% [2]. - The company saw a mixed performance across distribution channels, with revenue from distribution, direct sales, and consignment at 561 million, 109 million, and 36 million yuan, respectively, showing a decline in distribution but growth in direct sales [2]. Strategic Initiatives - The company is actively pursuing marketing reforms and exploring new channels, such as snack wholesale, to adapt to market pressures [2][3]. - Plans for the second half of the year include optimizing product, channel, and sales strategies, focusing on enhancing the quality and quantity of effective sales points [3]. - The company aims to diversify its channels and is progressing with overseas coconut processing projects and initial processing sales of coconut raw materials [3]. Profit Forecast - The company forecasts net profits of 92 million, 132 million, and 165 million yuan for 2025-2027, with a projected year-on-year change of -37%, +43%, and +25% respectively [4].

Core Insights - The company reported a significant decline in revenue and net profit for the first half of 2025, with revenue at 748 million yuan, down 20.90% year-on-year, and net profit at 18.55 million yuan, down 77.50% [1] - The decrease in performance is attributed to early-stage marketing reforms, fluctuations in marketing business, rising costs of key raw materials, and changes in product structure [1] Financial Performance - Revenue for the first half of 2025: 748 million yuan, a decrease of 20.90% year-on-year [1] - Net profit for the same period: 18.55 million yuan, a decline of 77.50% year-on-year [1] - Gross margin: 29.52%, down 6.33 percentage points year-on-year [1] Business Development - The company is expanding into new sales channels, particularly focusing on snack specialty chains [1] - Revenue from snack specialty channels reached 87.82 million yuan during the reporting period [1] - The company has initiated a coconut processing project in Vietnam, generating 38.79 million yuan in revenue from initial processing sales [1]

Core Viewpoint - The company, Huanlejia, reported a revenue of 748 million yuan and a net profit of 18.55 million yuan for the first half of 2025, demonstrating positive results through channel expansion, product upgrades, and brand rejuvenation amidst changing consumer trends and raw material fluctuations [1]. Group 1: Channel Expansion - The company has accelerated its multi-channel layout, with direct sales and consignment businesses continuing to grow. The snack specialty chain channel generated revenue of 87.82 million yuan, expanding its coverage in emerging retail [2]. - The company achieved over 385 million yuan in revenue from the Central and Southwest regions, accounting for more than 50% of total revenue, while steadily increasing penetration in East and North China [2]. - The improved channel structure allows the company's products to enter more consumer scenarios, potentially enhancing brand influence and market share [2]. Group 2: Brand Renewal and Product Matrix Optimization - The company is focusing on health and differentiation trends, accelerating new product iterations and brand upgrades. In the first half of 2025, it revamped its coconut water series and launched reduced-sugar fruit cans and coconut water products [3]. - The supply chain is being developed with a layout of "domestic fruit production areas + factories in Southeast Asia," creating a closed loop from raw material procurement to terminal sales, enhancing supply stability and cost control [3]. - The company is leveraging the popularity of the national IP "Nailong," with over 38 million fans, to drive a comprehensive upgrade from products to consumer scenarios, targeting younger demographics [3]. - Future strategies include deepening marketing reforms, accelerating product and channel optimization, and expanding the snack specialty system while advancing overseas coconut processing projects [3].

Core Viewpoint - The company is focusing on enhancing its product offerings in the canned fruit and coconut water segments while optimizing its sales strategies and cost structures to adapt to market challenges [2][3][5]. Product Development - The company is committed to high-quality canned products, emphasizing portable, casual, and diverse ingredient small-packaged canned fruit products. Recent launches include reduced-sugar versions to cater to varying consumer preferences [2]. - Coconut water, appreciated for its natural electrolytes, is being expanded with new products like coconut fruit water and coconut water beverages to diversify the price range and meet consumer demands [2]. Sales Strategy and Cost Management - In 2025, the company plans to refine its marketing efforts by tailoring sales strategies to different market conditions and optimizing expenditure structures [3]. - The company is addressing raw material costs, with a significant decrease in peach procurement prices by over 30% due to a bountiful harvest, while orange prices have seen a rise due to lower production [3]. Channel Development - The company is enhancing its multi-channel strategy, particularly in the snack specialty channel, achieving revenue of 46.4462 million yuan in Q1 2025 and plans to introduce more personalized and higher-value products [4]. Price Adjustments - The company is adjusting the ex-factory prices of its coconut juice beverages by 1%-8% due to rising raw material costs, while also lowering prices in some regions by 1%-5% [5]. Investment and Expansion - The company plans to invest up to 3,397.56 billion Indonesian rupiah (approximately 21 million USD) in a coconut processing project in Indonesia, aimed at enhancing its supply chain and product offerings [6]. Financial Performance - In Q1 2025, the company reported a main revenue of 449 million yuan, a year-on-year decrease of 18.52%, with a net profit of 34.2533 million yuan, down 58.27% [7]. - The company has a debt ratio of 40.98% and a gross margin of 31.38% [7]. Analyst Ratings - Over the past 90 days, eight institutions have rated the stock, with four buy ratings and four hold ratings, and the average target price set at 16.45 yuan [8].