The Zhitong Finance App learned that Guotai Junan released a research report stating that it maintains Baiguoyuan Group (02411)'s “increase in holdings” rating, with a target price of HK$9.11. The company held a press conference on the 10-year golden strategy. The four major opportunities will drive 100 billion sales, and the three major strategies have already been launched in 2024, so we are optimistic about future development.

According to the report, 1) The company held a 10-year golden strategy conference on January 5. The “tasty” strategy was upgraded to a “high quality fruit expert and leader”, and in 2032 it strived to become the world's leading agricultural ecological technology company, and eventually became the world's leading agricultural ecological technology platform company; 2) Behind the strategic upgrade: According to Frost & Sullivan and Junzhi data, the domestic fruit retail market is expected to be 1.78 trillion yuan in 2026, with a CAGR of about 8.3% exceeding the growth rate of popular fruit by 5.1%; fruit Quality/differentiation still has a lot of room for development; 3) Focusing on strategic upgrading, the company has set up three major business groups and overseas committees to focus on developing retail, ToB, and category businesses.

In addition, Baiguoyuan launched three major strategies in 2024: store renewal, signature fruit, and gift markets. 1) Released a new sixth-generation store image, and some stores are already in place, and plans to fully renew 6,000 stores within 3 months; the bank believes that the renewal + launch brand ambassadors are expected to drive store expansion and improving customer flow/store efficiency; 2) Continuing to promote variety introduction, soil improvement, and agricultural management. Currently, it has formed 35 exclusive fruit brands. In the future, it will focus on promoting signature fruit+ to 100 models. In the long run, its sales share is expected to rise from 13% to about 40%, which will increase customer unit price/profitability and highlight the brand mentality of channel/category brands; 3) Strengthen the gift market and launch a “global” The new concept of “Good Fruit Health Gifts in Baiguoyuan” uses key festivals to promote it as a mental brand for consumers to buy fruit gift boxes.