Summary of the report:

Group meal business and high-end catering business 28 exchange to fully open the incremental market. The company's high-end restaurant, Chinese fast food, group food business and food processing four major business departments, the two leading brands have been fully settled, group meals, fast food and restaurants have achieved the full complementarity of prime time. It provides a good opportunity for acquisition and integration for the family transformation of the company's high-end catering and the all-round development of Chinese fast food and group food; group meals will become the company's largest business department in the future and replace high-end catering as the main business. 28 conversion within five years has become the target. The industrialization level of large-scale production, the ability of cold chain logistics and the whole process control of food safety are the three core competitiveness of group meal business, and economies of scale are the key to profitability. The largest group meal enterprise in the United States has 1000 customers. The maximum number of domestic group meals is only 200,300 customers. It will be a general trend for Chinese group meal enterprises to catch up from behind and expand and concentrate their market share. The acquisition will be the main channel for the company to expand its group meal business, with little bottleneck in production capacity and labor costs, and an overall profit margin of more than 10%.

Xiang-E sentiment brand "go high, protect medium-low" reform turned to "Family JOYY Inc Restaurant". The positioning of the Xiang E sentiment restaurant boutique 20-30% of the customers are high-consumption groups. The core of several major reforms of the restaurant this year is around the two basic points of falling unit prices and rising passenger flow, thus reducing the proportion of high-end restaurants from 30% to 10%. The transition period of price for volume needs a certain amount of time to accumulate no matter from the brand effect or from the transformation and expansion of target customers. 13 years will become the year of adjustment of Xiange restaurant. However, with the sinking of group meals of high-end service personnel, the reduction of raw material costs and the gradual decline of amortization, the increase in turnover per unit area and the stability of gross profit margin will still make up for the stagnation of the overall high-end catering market.

The vertical penetration of flavor capital and food processing is in line with the trend of retail format transformation. The polarization trend of retail formats has gradually infiltrated from first-tier cities to second-and third-tier areas, that is, shopping centers and communities. Food and beverage matching plays a more and more important role in the core element of shopping center. Weizhi has increased its turnover by about 20-30% after renovation, upgrading and food adjustment, and the future expansion model is still mainly in direct operation, which is also in line with the market pattern of supply bubbles in shopping centers in first-tier cities, especially in community shopping centers. Open-bag ready-to-eat food is also about to be put on the market, and community convenience stores are the main channel for expansion.

It is estimated that the EPS of the company from 2013 to 2014 is 0.39 yuan and 0.48 yuan respectively, and the corresponding PE is 24 times and 19 times respectively. Give a "recommended" investment rating.