Core Viewpoint - Citigroup's report indicates that Anjoy Foods' Q2 revenue grew by 6% year-on-year, meeting expectations, while net profit fell by 23% year-on-year, missing expectations due to rising raw material and manufacturing costs, as well as increased discounting leading to lower gross margins [1] Financial Performance - Q2 revenue increased by 6% year-on-year, aligning with market expectations [1] - Net profit decreased by 23% year-on-year, falling short of expectations [1] - Gross margin was negatively impacted by rising costs and increased discounting [1] Product Performance - Sales of meat, fish paste products, and noodle and rice products declined [1] - Sales of vegetable dishes increased, particularly for crayfish, which saw double-digit growth due to price recovery [1] Dividend Policy - Dividend payout ratio increased to 70% [1] Future Outlook - Citigroup has lowered its net profit forecasts for 2025 to 2027 by 10% to 14% to reflect reduced gross margin expectations [1] - Despite ongoing headwinds in the restaurant industry, Anjoy Foods remains attractive due to its strong product portfolio and channel expansion initiatives [1] - Citigroup maintains a "Buy" rating on Anjoy Foods, with a slight decrease in target price from HKD 75 to HKD 74.8 [1]