Anjoy food(SH:603345)2025-05-12 01:48Summary of Company and Industry Insights from Conference Call Company Overview - Company: Anjijia Food - Industry: Frozen Food Industry Key Financial Performance - 2024 Revenue: 101.04 billion CNY, up 7.85% YoY, with major contributions from: - Prepared Foods: 78.39 billion CNY, growth of 15.4 billion CNY, driven by rapid growth in fresh-keeping products, revenue share increased to 10.5%, expected price close to 11.5 CNY/kg [2][3] - Frozen Dishes: 43.5 billion CNY, growth of 4.7%, notable increases in small crispy meat and shrimp slides, but shrimp tails declined due to price fluctuations [2][3] - Frozen Noodles and Rice: Close to 25 billion CNY, down 3.14% YoY, impacted by industry competition and price declines [2][3] - Gross Margin: 23.3% for 2024, up 0.09 percentage points, with improvements in frozen prepared foods and stable margins in fresh-keeping products [2][7] - Net Profit: Slight increase of 0.47%, affected by increased stock incentive costs and higher investments in roasted chicken and chicken sausages [2][7] Strategic Initiatives - Big Product Strategy: 39 products with over 100 million CNY in revenue, accounting for 70% of total sales, with stable growth in frozen fish products [2][5] - Dividend Policy: Increased payout ratio from 30% to 40%, with a cash dividend ratio of 65% for 2024, leading to a total payout ratio of 70% [4][12] - New Product Strategy for 2025: Focus on cost-effectiveness for B-end products and upgrading C-end products, with expected growth of 15%-20% for fresh-keeping products [4][16] Market Dynamics - Channel Performance: - Distributor Channel: 9% growth, reaching 123 billion CNY - Direct Sales: Down 4% due to decreased sales in chain stores - E-commerce: Slight decline of 2%, totaling 3.12 billion CNY, mainly due to the shutdown of the Qingliu 5 e-commerce platform [6] - Competition: Price competition in frozen noodles has intensified since 2023, with promotional efforts increasing to capture market share, leading to profit pressure [21][22] Future Outlook - 2025 Q1 Performance: Revenue of 36 billion CNY, down approximately 4% YoY; net profit of 3.95 billion CNY, down 10% YoY, affected by consumer environment and seasonal factors [8][9] - Government Subsidies: Increased by approximately 30 million CNY in Q1 due to the return of previously owed funds, positively impacting financial status [10] - Cost Control: Anticipated increase in costs due to raw material prices, but efforts in bulk procurement and centralized production are expected to mitigate impacts [36] Industry Trends - Frozen Hot Pot and Noodle Market: Expected growth despite price competition, with signs of recovery noted in April [18][19] - Small Enterprises: Many small businesses are at breakeven points, reflecting intense competition and survival pressures [27][28] - Market Share: The company maintains a leading market share across various segments, with ongoing efforts to innovate and respond to market demands [28] Conclusion - The company is positioned for moderate growth in 2024 and 2025, with strategic initiatives focused on product innovation, cost control, and market expansion. The competitive landscape remains challenging, but the company’s strong market position and proactive strategies are expected to sustain its growth trajectory.