Core Viewpoint - The company is adapting to changing consumer behaviors by enhancing its store operations and expanding online sales channels to counteract the decline in foot traffic at traditional markets [1][2]. Group 1: Store Operations and Strategy - The company is implementing a series of remedial measures in 2024 to address the decline in foot traffic, focusing on upgrading store image, product display, and renovations to improve customer experience [1]. - The company is assisting franchise owners in integrating online platforms, creating a model of "online ordering with local store delivery" to expand sales reach and enhance market competitiveness [1][2]. Group 2: Franchise and Customer Relations - In 2024, there has been a shift from proactive store opening intentions to a more cautious observation among franchisees, prompting the company to focus on improving existing store efficiency [2]. - The company is concentrating on quality improvement rather than quantity growth in its wholesale channel, developing a multi-tiered sales network through systematic client acquisition [2]. Group 3: Product Development - The company is diversifying its product categories in response to changing consumer habits, moving from primarily stir-fry products to include frying, steaming, and marinated items, while also introducing fresh and ready-to-eat products [2]. - The company is committed to enhancing product research and innovation to meet the increasingly diverse dietary needs of consumers, including the launch of healthy, nutritious, and low-calorie options [2].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company experienced a revenue decline of 1.71% year-on-year in 2024, with total revenue reaching 1.868 billion yuan and a significant drop in net profit by 37.67% to 84 million yuan [1][4]. - The first quarter of 2025 showed a slight revenue increase of 1.5% year-on-year, amounting to 470 million yuan, but net profit decreased by 37.98% to 21 million yuan [1][4]. - The company is expected to gradually recover its profit margins through customer expansion and channel empowerment, despite a challenging competitive environment [4]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 1.868 billion yuan, a decrease of 1.71% year-on-year, and a net profit of 84 million yuan, down 37.67% [1][5]. - The first quarter of 2025 saw total revenue of 470 million yuan, reflecting a 1.5% increase year-on-year, while net profit fell to 21 million yuan, a decline of 37.98% [1][5]. Product and Channel Analysis - Traditional product revenues faced pressure, with fried and baked goods declining by 11.87% and 4.28% respectively, while steamed and prepared dishes saw growth of 5.41% and 21.84% [2]. - Direct sales channels maintained steady growth, with revenue increasing by 4.34% to 809 million yuan, while distribution channels faced a 6.04% decline [2]. Profitability and Cost Structure - The gross margin for 2024 was 23.66%, slightly down from the previous year, with a notable increase in sales expense ratio to 5.40% due to increased market investment [3]. - The net profit margin for 2024 was 4.48%, down 2.58 percentage points year-on-year, but is expected to improve with operational efficiency and product structure adjustments [3]. Earnings Forecast and Valuation - The net profit forecast for 2025 and 2026 has been revised down to 99 million yuan and 111 million yuan, respectively, reflecting a 50% and 56% reduction from previous estimates [4]. - The current stock price corresponds to a P/E ratio of 27 for 2025, with expectations for gradual recovery in profit margins [4][5].

Core Insights - The company reported a revenue of 1.868 billion yuan in 2024, a year-on-year decrease of 1.71%, and a net profit of 84 million yuan, down 37.67% year-on-year [1] - Despite significant growth in the prepared food sector, overall performance was pressured by a substantial decline in revenue from fried and baked products [4] Revenue Breakdown - The main business involves providing customized, standardized semi-finished products, categorized into fried, baked, steamed, and dish products [4] - Revenue from fried products decreased by 11.87% year-on-year, while baked products also saw a notable decline [4] - In contrast, steamed products experienced growth, driven by an increase in savory buns and the consolidation effect from the subsidiary Weibaofeeding [4] - Revenue from dish products and others surged by 273.39% year-on-year, becoming the sole highlight of the company's performance [4] Sales Model Analysis - The sales model is divided into direct sales and distribution, with direct sales revenue reaching 809 million yuan, a year-on-year increase of 4.34% [5] - The number of major clients increased by 8.81% to 173, primarily consisting of national chain restaurant brands [5] - Conversely, distribution revenue declined by 6.04% due to market competition and consumer price sensitivity, impacting small and medium-sized restaurant enterprises [5] Cost and Profitability Challenges - The company's gross margin was 23.38%, a slight decrease of 0.03% year-on-year, with overall cost pressures remaining significant [6] - Sales expenses rose to 100 million yuan, an increase of 13.33%, leading to a sales expense ratio of 5.40% [6] - Stock incentive expenses significantly impacted net profit, with a net profit of 84 million yuan, down 31.99% when excluding stock incentive effects [6] - The company faces multiple challenges, including intensified market competition, declining core product revenue, and rising cost pressures, necessitating strategies for maintaining growth [6]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [1] Core Views - The company faced short-term operational pressure in 2024, with a focus on new products and new channel breakthroughs in 2025 to drive growth [4][7] - The revenue for 2024 was 1.868 billion yuan, with a net profit attributable to shareholders of 84 million yuan, reflecting a year-on-year decline of 31.99% [4][9] - The company is expected to achieve revenue growth in 2025 and 2026, with projected revenues of 1.970 billion yuan and 2.141 billion yuan respectively, representing year-on-year growth of 5.46% and 8.65% [9][11] Company Overview - The latest closing price is 25.92 yuan, with a total market capitalization of 2.5 billion yuan [3] - The company has a debt-to-asset ratio of 21.5% and a price-to-earnings ratio of 29.79 [3] Financial Performance - In 2024, the company reported a gross margin of 23.66% and a net margin of 4.48%, with an increase in market expenses impacting net profit [6] - The company’s revenue from various product categories showed mixed performance, with significant growth in frozen prepared dishes [5][7] - The first quarter of 2025 showed a revenue of 470 million yuan, with a net profit of 21 million yuan, indicating a year-on-year decline in net profit [4][9] Earnings Forecast - The earnings per share (EPS) for 2025 is projected to be 1.11 yuan, with corresponding price-to-earnings ratios of 23, 20, and 18 for the years 2025, 2026, and 2027 respectively [9][11] - The company aims to narrow overall expense ratios in 2025, which is expected to help restore net profit margins [8]

Core Viewpoint - Qianwei Yangchu, known as the "first stock of the catering supply chain" in A-shares, reported a decline in both revenue and net profit for the year, attributing the performance pressure to the competitive market environment [1][2]. Financial Performance - In 2024, Qianwei Yangchu achieved operating revenue of approximately 1.868 billion yuan, a year-on-year decrease of 1.71% [2]. - The net profit attributable to shareholders was about 84 million yuan, down 37.67% year-on-year [2]. - The net profit after deducting non-recurring gains and losses was approximately 83 million yuan, a decline of 32.57% year-on-year [2]. - Excluding the impact of stock incentives, the net profit attributable to shareholders was 100 million yuan, a decrease of 31.99% [2]. Product Revenue Breakdown - Revenue from fried products decreased by 11.87% to 766.88 million yuan [4]. - Revenue from baked goods fell by 4.28% to 340.07 million yuan [4]. - Revenue from steamed products increased by 5.41% to 392.80 million yuan [4]. - Revenue from dishes and others rose significantly by 21.84% to 359.65 million yuan [4]. - Overall, total revenue from main products was approximately 1.859 billion yuan, down 1.79% year-on-year [4]. Sales Channels and Strategies - The company primarily serves chain restaurants, group meals, hotels, banquets, and new retail brands with customized and standardized frozen products [9]. - In 2024, the revenue from the distribution channel was approximately 1.051 billion yuan, accounting for 56.50% of total revenue, with a year-on-year decline of 6.04% [12]. - Direct sales revenue was approximately 808.80 million yuan, with a year-on-year increase of 4.34% [10][11]. - The number of major clients increased by 8.81% to 173 by the end of 2024 [10]. Future Plans - In 2025, the company plans to increase investment in research and development, production resources, and customer expansion in the baking and frozen prepared dishes segments to meet customer demands for rapid innovation [1].

Core Viewpoint - The company achieved steady revenue growth and significant expansion in the prepared food sector, driven by its "key customers + distributors" strategy amidst fierce market competition [1][2]. Group 1: Financial Performance - The company reported a total revenue of 1.868 billion yuan and a net profit of 83.69 million yuan for the year [1]. - Direct sales revenue increased by 4.34% year-on-year, with the number of key customers rising by 8.81% [1][2]. - Revenue from frozen prepared dishes and other products surged by 273.39%, reaching 142 million yuan [1]. Group 2: Business Strategy - The company employs a dual-driven strategy of "key customers + distributors," with direct sales contributing 8.09 billion yuan, accounting for 43.29% of total revenue [2]. - The number of distributors increased to 1,953, with significant growth in customer numbers in both northern and southern regions [2]. Group 3: Research and Development - The company invested 23.74 million yuan in R&D, a 12.21% increase year-on-year, representing 1.27% of total revenue [2]. - The R&D team focuses on four product lines: staple foods, snacks, baked goods, and prepared dishes, launching new products tailored for various dining scenarios [2]. Group 4: Production Capacity - The company has a designed production capacity of 196,600 tons, with an actual capacity of 123,800 tons and an additional 84,000 tons under construction [2]. - New capacity is expected to alleviate production bottlenecks and support market share growth by 2026 [2]. Group 5: Future Outlook - For 2025, the company plans to focus on the "baked goods" and "frozen prepared dishes" sectors, enhancing e-commerce and key account supermarket channels [3]. - Continuous investment in product innovation, capacity reserves, and customer structure optimization is anticipated to strengthen the company's competitive advantage during industry consolidation [3].