Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown robust revenue growth and good profit performance, with a revenue of 2.94 billion yuan in H1 2025, representing a year-on-year increase of 19.6%, and a net profit attributable to the parent company of 370 million yuan, up 16.7% year-on-year [4][5] - The company is capitalizing on the growth potential of its core products, particularly the spicy konjac and fish tofu, while also enhancing its brand strength through innovation and channel expansion [4][5] - The profit forecast remains unchanged, with expected net profits of 840 million, 1.05 billion, and 1.32 billion yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 23.5, 18.9, and 15.0 times [4][5] Financial Performance Summary - In Q2 2025, the company achieved a revenue of 1.4 billion yuan, a 13.5% increase, with the spicy konjac product line showing significant sales growth of 155.1% [5][6] - The gross margin for Q2 2025 was 31.0%, a decrease of 2.0 percentage points, primarily due to channel structure adjustments [6] - The company actively managed expenses, resulting in a sales expense ratio of 9.8%, down 3.7 percentage points, and a management expense ratio of 3.7%, down 1.1 percentage points [6] Revenue Breakdown - For H1 2025, revenue from various product lines included 790 million yuan from spicy konjac, 170 million yuan from spicy meat and poultry, and 190 million yuan from spicy tofu products, with respective year-on-year changes of +155.1%, -16.7%, and +12.7% [5] - Regional revenue for H1 2025 was led by Central China with 920 million yuan, followed by East China with 550 million yuan, and Southwest and Northwest regions with 430 million yuan, showing significant growth in overseas markets [5] Financial Projections - The company is projected to achieve revenues of 6.575 billion, 8.188 billion, and 10.066 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 24.0%, 24.5%, and 22.9% [8][10] - The net profit attributable to the parent company is expected to grow to 841 million, 1.046 billion, and 1.316 billion yuan for the same years, with growth rates of 31.4%, 24.4%, and 25.8% respectively [8][10]

Core Viewpoint - The company reported a strong performance in the first half of 2025, with significant revenue and profit growth despite challenges in certain sales channels [1][2]. Financial Performance - For H1 2025, the company achieved revenue of 2.941 billion yuan, a year-on-year increase of 19.58%, and a net profit attributable to shareholders of 373 million yuan, up 16.7% [1]. - In Q2 2025, revenue reached 1.403 billion yuan, reflecting a year-on-year growth of 13.54%, while net profit was 195 million yuan, an increase of 21.75% [1]. - The company's gross profit margin for Q2 2025 was 30.97%, a decrease of 1.98 percentage points year-on-year, attributed to changes in channel structure [3]. Revenue Breakdown - Revenue from direct supermarkets, distribution, and e-commerce channels for H1 2025 was 0.63 billion, 2.303 billion, and 0.574 billion yuan, showing a year-on-year change of -42%, +30.09%, and -0.97% respectively [2]. - The company’s key revenue driver was the konjac product line, which generated 791 million yuan in revenue, a remarkable increase of 155.1% year-on-year [2]. Cost and Expense Management - The company experienced a reduction in sales, management, and R&D expense ratios, with sales expense ratio down by 2.70 percentage points year-on-year [3]. - The net profit margin for Q2 2025 was 13.79%, an increase of 0.79 percentage points year-on-year, indicating improved profitability [3]. Strategic Initiatives - The company is focusing on high-growth product categories and expanding its distribution channels, including new product launches and overseas market penetration [4]. - The introduction of new flavors and products, such as the "Mowon" brand, aims to enhance market presence and drive revenue growth [4]. Investment Outlook - The company maintains strong growth potential, with adjustments in e-commerce strategies and a focus on high-margin products expected to support long-term profitability [5]. - The earnings forecast for 2025-2027 has been slightly adjusted to 800 million, 990 million, and 1.19 billion yuan, reflecting the impact of e-commerce channel adjustments [5].

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 95 yuan [2][6]. Core Views - The company reported a revenue of 2.941 billion yuan for H1 2025, representing a year-on-year increase of 19.58%, and a net profit of 373 million yuan, up 16.7% year-on-year. The adjusted net profit was 334 million yuan, reflecting a 22.5% increase year-on-year [2][6]. - The company is adjusting its e-commerce strategy, which has led to a slight decline in revenue from this channel, while the direct sales and other channels have shown growth. The core revenue driver has been the sales of konjac products, which saw a significant increase of 155.1% year-on-year [2][6][3]. - The report highlights that the company has improved its gross profit margin and net profit margin, with a net profit margin of 13.79% in Q2 2025, up 0.79 percentage points year-on-year [2][6]. Financial Summary - For the fiscal years 2024A to 2027E, the projected total revenue is as follows: 5.304 billion yuan (2024A), 6.304 billion yuan (2025E), 7.593 billion yuan (2026E), and 8.925 billion yuan (2027E), with corresponding year-on-year growth rates of 28.9%, 18.9%, 20.5%, and 17.5% [2][6]. - The projected net profit for the same period is: 640 million yuan (2024A), 801 million yuan (2025E), 993 million yuan (2026E), and 1.197 billion yuan (2027E), with year-on-year growth rates of 26.5%, 25.2%, 23.9%, and 20.6% [2][6]. - The earnings per share (EPS) are expected to increase from 2.35 yuan in 2024A to 4.39 yuan in 2027E, with a corresponding price-to-earnings (P/E) ratio decreasing from 32 to 17 over the same period [2][6]. Market Performance - The company has shown a strong market performance compared to the benchmark index, with a notable increase in stock price over the past year [5][6]. - The total market capitalization of the company is approximately 20.175 billion yuan, with a circulating market value of about 18.174 billion yuan [3][6].