Main points of investment:
The company announced the third quarter of 2023, the results are in line with expectations, profits increased significantly compared with the same period last year. In the first three quarters, the company achieved revenue of 1.09 billion yuan, an increase of 93.2% over the same period last year and-8.5% over the same period of 19 years. The company realized a net profit of 71.746 million yuan (6800-74 million yuan in advance), with a loss of 175 million yuan in the same period last year, an increase of 36.4% over the same period last year. In the third quarter alone, the operating income was 422 million yuan, a decrease of 2.5% compared with the third quarter of 19 years, and the net profit was 43.83 million yuan, an increase of 115.6% over the same period last year. The non-net profit was 40.666 million yuan, an increase of 152.3% over the same period last year.
The catering industry has rebounded significantly, and the strong willingness to travel in the summer has led to a substantial release of demand. Since 2023, the demand of the catering industry has been released significantly, and the high popularity of summer travel from July to August has led to the growth of service-oriented catering business. From January to September 2023, national catering revenue totaled 3.7105 trillion yuan, an increase of 18.7 percent over the same period last year, according to the National Bureau of Statistics. According to the Ministry of Culture and Tourism, the number of domestic tourists in the summer of 2023 was 1.839 billion, with domestic tourism revenue of 1.21 trillion yuan and the overall recovery accelerated. During the 8 days of the Mid-Autumn Festival National Day holiday, the number of people received by the company's national catering stores and operating income increased by 67% and 95% respectively compared with the same period last year, both reaching record highs.
Store management upgrade the profitability of the three stores and then tamp, food adjustment and innovation to see results. The company focuses on the strategic positioning of diversified catering industry groups, food and beverage plate peace stores "China a unique? Siheyuan in the air ", Qianmen shop" axis food gift ", Wangfujing shop" Gongfu? The "Dragon and Phoenix Chengxiang" project 23H1 respectively contributed 42% of the store's revenue, 52% of the company's revenue, and 52% of the store's revenue, and continued to drive store revenue growth, store operation upgrading, and profits rising with word of mouth. The company continues to strengthen food research and development, food adjustment has achieved remarkable results, and the proportion of innovative food sales has increased. Online channel ploughing, e-commerce omni-channel sales during the 618 period + 200% compared with the same period last year.
Continue to create star fashion style rich product matrix, the new sub-brand cut into the snack food track. Food plate companies give full play to the linkage mechanism of catering and food, promote the project of food and beverage products in an orderly manner and enrich the product matrix. The company continues to create star popular style items, such as hand-sliced roast duck 3.0 step by step mass production, in addition to more than 10 kinds of new short-lock fresh products and food store distribution products, including high-speed rail Duck Seasoned with Soy Sauce, counter meat, pastries and so on. In the Mid-Autumn Festival, the quintessence series of mooncakes and mooncake gift boxes with traditional cultural characteristics were launched. The company also uses the brand-new sub-brand "Zero Research Institute" to enter the snack food track to maintain positive innovation.
Investment analysis opinion: the structural adjustment of the company's dishes and stores is beginning to achieve results, and it is expected to continue to give full play to the advantages of time-honored brands and realize the coordinated development of catering, food and group meals. We raise our profit forecast and estimate that the net profit for 23-25 will be RMB 0.90x145G (the previous value is RMB 179m), corresponding to the PE for 23-25, which is double that of 38-23-19, maintaining the "buy" rating.
Risk tips: food safety risks, intensified competition in the prefabricated food industry, shortage of senior technical management personnel, etc.