Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of over 20% against the market benchmark within the next six months [4][14]. Core Views - The company reported a revenue of 7.604 billion yuan for the first half of 2025, a year-on-year increase of 0.80%, while the net profit attributable to shareholders was 676 million yuan, a decrease of 15.79% year-on-year [1]. - The company is experiencing phase-specific pressure on profitability, primarily due to rising raw material costs, particularly for key products like crayfish and fish paste [3]. - The new retail channel is showing significant growth, with a year-on-year increase of 35.15% in the second quarter of 2025, indicating a successful strategic shift [2]. Financial Performance Summary - For Q2 2025, the company achieved a revenue of 4.005 billion yuan, up 5.69% year-on-year, but the net profit decreased by 22.74% to 281 million yuan [1][2]. - The gross margin for the first half of 2025 was 20.52%, down 3.39 percentage points year-on-year, while the gross margin for Q2 was 18.00%, down 3.29 percentage points year-on-year [3]. - The company plans to distribute an interim dividend of 1.425 yuan per share, totaling 473 million yuan, which represents 70.02% of the net profit for the first half of 2025 [1]. Sales Performance - In Q2 2025, the company’s sales by category were as follows: frozen prepared foods 1.750 billion yuan, dishes 1.580 billion yuan, noodles and rice 583 million yuan, and agricultural products 87 million yuan, with the dishes segment showing a significant increase driven by crayfish sales [2]. - By channel, the revenue from distributors, direct sales, supermarkets, and new retail/e-commerce was 3.134 billion yuan, 328 million yuan, 152 million yuan, and 391 million yuan respectively, with new retail and e-commerce channels benefiting from strategic focus [2]. Future Outlook - The company is expected to benefit from seasonal demand recovery in the second half of the year, alongside the integration of acquisitions that will enhance its market presence in premium supermarkets and convenience stores [3]. - The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to 1.416 billion yuan, 1.659 billion yuan, and 1.859 billion yuan respectively, reflecting a year-on-year decrease of 5% in 2025 but growth in subsequent years [4].