Report Summary 1. Report Industry Investment Rating No information provided on the industry investment rating. 2. Core Viewpoints - The company aims to expand its market share through various strategies in different sales channels in 2025, including optimizing and expanding retail stores, improving the distributor system in the wholesale channel, and deepening cooperation in the supermarket channel [24][25]. - The company's gross margin has declined in the past two years due to beef raw material price fluctuations and market environment impacts, and it plans to take measures such as price adjustment, supply - chain management, and supplier optimization to improve profitability [25][26]. - The company is focusing on R & D innovation, launching new products according to consumer habits and shifting the R & D direction from frozen foods to fresh and cooked foods [26]. 3. Summary by Related Catalogs 3.1 Research Basic Situation - The research object is Weizhixiang, belonging to the food and beverage industry. The reception time was September 15, 2025, and the company's reception personnel included the chairman, general manager, financial director, board secretary, and independent director [17]. 3.2 Detailed Research Institutions The research institutions included investors and others, but no specific details were provided [20]. 3.3 Research Institution Proportion No information provided on the research institution proportion. 3.4 Main Content Data - **Business Development Direction**: In the retail channel, the company will optimize and upgrade franchise stores, implement the "Thousand - City, Ten - Thousand - Store" plan, and explore blank markets in third - and fourth - tier cities and townships in East China; in the wholesale channel, it will improve the distributor system and promote the "1 + N" model; in the supermarket channel, it will deepen cooperation and expand the cooperation map [24][25]. - **Gross Margin Issue**: The decline in gross margin is mainly due to beef raw material price fluctuations, and the company will adjust product prices, strengthen supply - chain management, and optimize suppliers to improve profitability [25][26]. - **R & D Innovation**: In the first half of 2025, the company launched various types of products according to consumer habits and shifted the R & D direction from frozen foods to fresh and cooked foods [26].

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].