The 2023 organizational structure was adjusted, and the whole year ended steadily. The company released its 2023 annual report, with 2023 revenue of 5.139 billion yuan, -3.78% year-on-year; net profit to mother was 1,697 billion yuan, +386.53% year-on-year.
Delicious Fresh's revenue in 2023 was 4.932 billion yuan, -0.45% YoY; net profit was 599 million yuan, +3.04% YoY. Revenue by product, soy sauce/chicken essence, chicken powder/ cooking oil/ other revenue was 30.29/6.76/4.46/ 716 billion yuan, +0.09%/+13.44%/-10.62%/-6.79% year-on-year.
On the profit side, the net interest rate of Delicious Fresh Food was +0.41pct to 12.15% year-on-year in 2023, of which gross margin was +1.92pct to 32.66%, mainly due to lower raw material prices and product structure optimization. 2023 Delicious Fresh Sales/Management/R&D/Financial Expense Ratio -0.20/+0.97/+0.09/-0.05pct year-on-year.
Get ready to go to battle and set out again with the goal of 10 billion dollars. The company announced the 2024 restricted stock incentive plan. For 322 people, including management and core technical leaders, the company plans to grant 14.388 million shares, accounting for 1.83% of the total share capital, at a grant price of 14.19 yuan/share. The target revenue for 2024-2026 was $57.56/67.84/10.021 billion, up 12.00%/17.86%/47.73% year over year; operating margin not less than 15%/16.5%/18%; return on net assets not less than 14%/15.5%/20%. The 2024-2028 equity incentive fee is estimated at 4145/6217/4461/2219/512 million. At the same time, the company announced Delicious Fresh's strategy for the next three years, with a target revenue of 10 billion yuan and an operating profit target of 1.5 billion yuan in 2026. The company's operations continue to improve, and we look forward to resuming dealer expansion.
Profit forecasting and investment advice. In 2024-2026, the company's revenue is expected to be 58.26/68.06/7.965 billion yuan, up 13.37%/16.81%/17.03% year on year; net profit to mother is 7.54/9.02/1,130 billion yuan, a year-on-year change of -55.59%/+19.63%/+25.35%. Excluding mergers and acquisitions, it is estimated that in 2024-2026, Delicious Fresh's revenue will be $56.72/66.94/7.886 billion yuan, up 15.01%/17.82% year on year; net profit to mother will be 752/9.79/1,219 billion yuan, up 33.58%/30.12%/24.54% year on year. The 2024 valuation of Delicious Fresh PE was 25 times; the real estate business had a reasonable value of 3 billion yuan and a reasonable value of 27.76 yuan/share, maintaining the purchase rating.
Risk warning. The industry's boom fell short of expectations. The reforms fell short of expectations. Channel expansion fell short of expectations.