Core Viewpoint - The report from Huaxin Securities indicates that Jingzai Food's net profit attributable to the parent company for the first half of 2025 is 112 million yuan, a decrease of 22% year-on-year, with Q2 net profit at 44 million yuan, down 36% year-on-year. The company's performance is under short-term pressure, and attention should be paid to the results of product channel adjustments [1] Financial Performance - In H1 2025, the revenue from various product categories showed mixed results: fish products increased by 8% to 757 million yuan, bean products rose by 4% to 115 million yuan, while vegetable products and poultry products saw declines of 11% to 34 million yuan and 24% to 196 million yuan respectively. Fish and bean products maintained stable growth, while poultry products faced short-term pressure due to industry demand, seasonal shifts, and channel changes [1] - The company's revenue from distribution and direct sales in H1 2025 was 792 million yuan (down 9%) and 332 million yuan (up 29%) respectively, indicating strong growth in direct sales [1] Channel Performance - Online and offline channel revenues in H1 2025 were 185 million yuan (down 7%) and 939 million yuan (up 1%) respectively. The online channel experienced a decline due to community group buying impacts, while the offline channel expanded its coverage, reaching over 300,000 terminals and more than 3,500 distributors. The revenue from snack specialty channels continued to grow significantly [1] Strategic Initiatives - The company is accelerating the development of customized new products, exploring emerging channels, and actively promoting overseas market expansion. With the promotion of new products and deepening of channels, there is potential for incremental contributions to the company [1]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating short-term pressure on performance due to various factors including rising raw material costs and changes in sales channels [1][2]. Financial Performance - Total revenue for H1 2025 was 1.124 billion yuan, a decrease of 1% year-on-year, with a net profit of 112 million yuan, down 22% [1]. - In Q2 2025, total revenue was 528 million yuan, a decline of 10%, with a net profit of 44 million yuan, down 36% [1]. Profitability Analysis - The gross margin decreased by 2 percentage points to 28.93%, primarily due to rising raw material prices and weakened scale effects [2]. - The net profit margin fell by 4 percentage points to 8.42%, indicating short-term pressure on profitability [2]. Product and Channel Performance - Revenue from various product categories showed mixed results: fish products and bean products increased by 8% and 4% respectively, while vegetable products and poultry products decreased by 11% and 24% respectively [3]. - The company’s revenue from distribution channels decreased by 9%, while direct sales increased by 29%, highlighting strong growth in direct sales [3]. - Online sales declined by 7% due to community group buying impacts, while offline sales grew by 1%, with the company expanding its coverage to over 300,000 terminals and more than 3,500 distributors [3]. Future Outlook - The company is accelerating the development of customized new products and exploring emerging channels, with expectations for growth from new product promotions and channel deepening [4]. - EPS forecasts for 2025-2027 have been adjusted to 0.58, 0.68, and 0.80 yuan respectively, with current stock prices corresponding to PE ratios of 22, 18, and 16 times [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a total revenue of 771 million yuan for the first half of 2025, representing a year-on-year increase of 45.59%. The net profit attributable to shareholders was 108 million yuan, up 42.47%, while the net profit excluding non-recurring items was 92.78 million yuan, an increase of 52.51% [2][4] - In the second quarter of 2025, total revenue reached 388 million yuan, reflecting a year-on-year growth of 52.45%. The net profit attributable to shareholders was 58.15 million yuan, a significant increase of 77.03%, and the net profit excluding non-recurring items was 49.19 million yuan, up 87.86% [2][4] - The company is focusing on new product launches and channel adjustments, particularly in the Sam's Club channel, which is expected to drive future growth [9] Financial Performance Summary - For the first half of 2025, the company's net profit margin decreased by 0.31 percentage points to 14.07%, while the gross margin fell by 3.27 percentage points to 27.57%. The expense ratio decreased by 4.4 percentage points to 11.85% [9] - In the second quarter of 2025, the net profit margin improved by 2.08 percentage points to 14.99%, with a gross margin of 28.04% [9] - The company plans to distribute a cash dividend of 0.23 yuan per share, which represents 90.69% of the net profit attributable to shareholders for the period [9] Earnings Forecast - The company is expected to achieve net profits attributable to shareholders of 230 million yuan, 262 million yuan, and 293 million yuan for the years 2025, 2026, and 2027, respectively. The corresponding earnings per share (EPS) are projected to be 0.54 yuan, 0.61 yuan, and 0.69 yuan, with price-to-earnings (PE) ratios of 26, 23, and 21 times, respectively [9]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company reported a slight decrease in revenue for the first half of 2025, with total revenue of 1.12 billion yuan, a year-on-year decrease of 0.50%, and a net profit of 1.12 billion yuan, down 21.86% year-on-year [1]. - The online channel has been adjusted, while the fish products segment showed stable performance, with fish products revenue increasing by 7.61% year-on-year [2]. - The company's gross margin has been impacted by a reduction in scale and rising raw material costs, leading to a short-term decline in profitability [3]. Summary by Sections Financial Performance - In 25H1, the company achieved revenue of 1.12 billion yuan, with a net profit of 1.12 billion yuan, reflecting a decrease of 21.86% year-on-year. The second quarter saw revenue of 528 million yuan, down 10.37% year-on-year, and a net profit of 44 million yuan, down 36.27% year-on-year [1]. - Revenue from online and offline channels in 25H1 was 185 million yuan and 939 million yuan, respectively, with online sales decreasing by 6.82% and offline sales increasing by 0.85% [2]. Product Performance - Revenue from various product categories in 25H1 included fish products at 757 million yuan (up 7.61%), vegetable products at 225 million yuan (up 14.30%), while quail eggs saw a decline due to price competition [2]. Profitability and Costs - The gross margin for 25H1 was 29.45%, with a decrease in the second quarter to 28.93%, reflecting cost pressures and reduced scale effects [3]. - The selling expense ratio increased to 13.81% in 25H1, attributed to enhanced brand building and promotional expenses [3]. Earnings Forecast and Valuation - The net profit forecast for 2025-2027 has been revised down to 254 million yuan, 302 million yuan, and 359 million yuan, respectively, with corresponding EPS of 0.56, 0.67, and 0.80 yuan [4]. - The current stock price corresponds to a P/E ratio of 22 for 2025, 19 for 2026, and 16 for 2027 [4].

Investment Rating - The investment rating for the company is "Buy" [5][7]. Core Views - The company is currently in an adjustment phase, with performance under pressure due to intensified external competition and diminishing channel benefits. However, there are expectations for gradual improvement in the second half of the year, alongside the anticipation of new product launches [5][8]. - Revenue forecasts for 2025-2027 are updated to 2.543 billion, 2.790 billion, and 3.078 billion yuan, reflecting year-on-year growth of 5.4%, 9.7%, and 10.3% respectively. The net profit attributable to the parent company is projected to be 251 million, 333 million, and 390 million yuan, with a year-on-year change of -13.9%, +32.9%, and +17.1% respectively [5][9]. Revenue and Profit Analysis - For Q2 2025, the company reported revenue of 528 million yuan, a decrease of 10.37%, and a net profit of 44 million yuan, down 36.27%. For the first half of 2025, revenue was 1.124 billion yuan, a slight decline of 0.5%, with a net profit of 112 million yuan, down 21.86% [8]. - In terms of product categories, revenue for fish products and bean products increased by 7.6% and 3.6% respectively, while poultry products saw a decline of 24.0% [8]. - The company's gross margin decreased by 1.8 percentage points in Q2 2025, primarily due to rising fish dry costs, leading to a net profit margin decline of 3.4 percentage points [8]. Channel Performance - In the first half of 2025, offline revenue grew by 0.9% while online revenue decreased by 6.8%. The offline channel showed growth in bulk sales, but modern and circulation channels performed weakly. Online sales, particularly on platforms like Douyin, faced significant adjustments, with overall GMV down 24% [8][9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has shown steady revenue growth and an improving profitability trend, despite facing challenges in certain product categories and external market conditions [5][7] - The company is expected to achieve revenue of 25.36 billion, 27.58 billion, and 30.23 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 2.45 billion, 3.33 billion, and 3.84 billion RMB [7] Financial Performance Summary - For 1H2025, the company reported revenue of 1.12 billion RMB, a decrease of 0.50% year-on-year, and a net profit of 0.44 billion RMB, down 36.27% year-on-year [7] - The revenue breakdown shows that fish products generated 0.76 billion RMB (up 7.61%), poultry products 0.20 billion RMB (down 24.00%), and bean products 0.12 billion RMB (up 3.61%) [7] - The company’s gross margin and net margin for 1H2025 were 29.45% and 10.02%, respectively, reflecting a decline compared to the previous year [7] - The company’s operating expenses have increased, with sales, management, R&D, and financial expense ratios rising year-on-year [7] Earnings Forecast - The projected earnings for the company are as follows: - Revenue: 2,536 million RMB in 2025, 2,758 million RMB in 2026, and 3,023 million RMB in 2027 - Net profit: 245 million RMB in 2025, 333 million RMB in 2026, and 384 million RMB in 2027 - EPS is expected to be 0.54 RMB in 2025, 0.74 RMB in 2026, and 0.85 RMB in 2027 [6][8] Valuation Metrics - The company’s PE ratios are projected to be 23.3 in 2025, 17.1 in 2026, and 14.8 in 2027, indicating a favorable valuation trend [6][8] - The ROE is expected to be 16.2% in 2025, 20.3% in 2026, and 21.5% in 2027, suggesting strong returns on equity [6][8]

Financial Performance - The company achieved a revenue of 1.124 billion CNY and a net profit of 112 million CNY in the first half of 2025 [2] - Key product categories such as leisure fish products and bean products showed stable growth, while poultry products faced challenges due to industry demand fluctuations and channel changes [2] Product Development - The company is focusing on upgrading its quail egg products to "antibiotic-free" versions to enhance quality-price ratio and expand market reach [3] - The konjac product line generated 79 million CNY in revenue last year, becoming a "billion-level" product, with ongoing R&D efforts to enhance competitiveness [3] Channel Strategy - The snack specialty channel has seen rapid growth, with plans for deeper cooperation and product adaptation to meet channel needs [4] - The company is actively pursuing partnerships with membership stores, developing new product forms tailored to this channel [4] Strategic Adjustments - The company will maintain its focus on healthy and tasty snacks, shifting its strategy to prioritize channel development and deeper cooperation with partners [5] - Emphasis will be placed on adapting products to various channel characteristics to ensure sustainable growth [5]

Group 1 - The company reported a revenue of 1.12 billion yuan for H1 2025, a year-on-year decline of 0.5%, and a net profit attributable to shareholders of 110 million yuan, down 21.9% year-on-year [1] - Due to increased short-term expenses, profit margins are under pressure, leading to a downward revision of profit forecasts for 2025-2027, with expected net profits of 320 million (-20 million), 400 million (-20 million), and 510 million (-20 million) yuan, representing year-on-year growth of 10.8%, 24.8%, and 26.1% respectively [1] - The company is positioned as a leading player in the spicy snack segment, investing in marketing to boost performance during peak seasons, maintaining a "buy" rating [1] Group 2 - In Q2 2025, the company's revenue declined by 10.4% year-on-year due to intensified external competition [2] - For H1 2025, revenue from fish products, poultry products, bean products, and vegetable products was 760 million, 200 million, 110 million, and 30 million yuan respectively, with year-on-year changes of +7.6%, -24.0%, +3.6%, and -10.7% [2] - The company achieved a gross margin of 29.5% for H1 2025, a decrease of 0.95 percentage points, with Q2 2025 gross margin at 28.9%, down 1.8 percentage points year-on-year [2] - The sales expense ratio for Q2 2025 was 14.3%, up 2.2 percentage points year-on-year, primarily due to investments in new media promotion [2] - The company is expanding its product matrix and enhancing multi-channel coverage, with expectations for new products like soft-boiled quail eggs and short-shelf-life bean curd to perform well in emerging sales channels [2]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company has experienced short-term profit pressure due to increased marketing expenses, leading to a downward revision of profit forecasts. The expected net profits for 2025-2027 are projected to be 320 million, 400 million, and 510 million yuan respectively, with year-on-year growth rates of 10.8%, 24.8%, and 26.1% [4][6] - The company is recognized as a leading player in the spicy snack segment and is expected to leverage seasonal demand through new product launches and marketing efforts [4][6] Financial Performance Summary - For the first half of 2025, the company reported revenue of 1.12 billion yuan, a year-on-year decline of 0.5%, and a net profit of 110 million yuan, down 21.9% year-on-year [4][5] - The revenue breakdown for the first half of 2025 shows steady growth in fish products (+7.6%) while poultry products faced significant pressure (-24.0%). Overall, the company’s revenue from various product categories was 760 million for fish, 200 million for poultry, 110 million for bean products, and 30 million for vegetable products [5] - The company’s gross margin for the first half of 2025 was 29.5%, a decrease of 0.95 percentage points, with the second quarter gross margin at 28.9%, down 1.8 percentage points year-on-year [6][10] Revenue and Profit Forecasts - The company’s projected revenues for 2025, 2026, and 2027 are 2.661 billion, 3.218 billion, and 3.956 billion yuan respectively, with year-on-year growth rates of 10.3%, 20.9%, and 22.9% [7][9] - The expected net profit for 2025 is 323 million yuan, with a year-on-year growth of 10.8%, and for 2026 and 2027, the net profits are projected to be 403 million and 508 million yuan, reflecting growth rates of 24.8% and 26.1% respectively [7][9] Valuation Metrics - The price-to-earnings (P/E) ratios for the company are projected to be 17.9, 14.3, and 11.4 for 2025, 2026, and 2027 respectively [7][9] - The price-to-book (P/B) ratios are expected to decline from 4.4 in 2023 to 2.5 by 2027 [7][9]

Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 771 million yuan, a year-on-year growth of 45.59%, and a net profit of 108 million yuan, up 42.47% [1] - The second quarter of 2025 saw even higher growth rates, with revenue of 388 million yuan, a 52.45% increase year-on-year, and a net profit of 58 million yuan, up 77.03% [1] Revenue Breakdown - Poultry products showed strong growth, with Q2 2025 revenue of 334 million yuan, a year-on-year increase of 63.47%, while livestock products generated 24 million yuan, a slight increase of 0.68% [1] - The Southeast region experienced remarkable growth, achieving Q2 2025 revenue of 239 million yuan, up 185.96% year-on-year, while the Southwest region saw a decline of 9.18% [1] - Both online and offline channels maintained rapid growth, with online revenue reaching 24 million yuan, a 153.32% increase, and offline revenue at 363 million yuan, up 49.08% [1] Profitability Metrics - The gross profit margin decreased to 28.04%, down 2.16 percentage points year-on-year, primarily due to the increased proportion of low-margin channels [1] - The company achieved a net profit margin of 14.99% in Q2 2025, an increase of 2.08 percentage points year-on-year, with a non-GAAP net profit margin of 12.68%, up 2.39 percentage points [2] Cost Management - The expense ratio significantly decreased to 11.44%, down 5.47 percentage points year-on-year, with the sales expense ratio at 8.02%, down 4.10 percentage points [2] - Management and R&D expense ratios also saw reductions, contributing to improved profitability [2] Strategic Initiatives - The company is focusing on product innovation and expanding its market presence, particularly in the snack food sector, with plans to enhance its product offerings and collaborate with new distribution channels [2] - The core product, spicy chicken feet, continues to hold a leading position in its niche market, while efforts are being made to accelerate national market expansion [2] Future Projections - Revenue forecasts for 2025-2027 are projected at 1.675 billion, 2.021 billion, and 2.426 billion yuan, representing year-on-year growth rates of 41.66%, 20.67%, and 20.02% respectively [3] - Expected net profits for the same period are 219 million, 261 million, and 317 million yuan, with corresponding growth rates of 39.36%, 19.16%, and 21.33% [3]