Incident: The company's shareholders' meeting approved the “Yasui Foods' Shareholder Return Plan for the Next Three Years (2024-2026)”, confirming that the company's annual profit distribution in cash was raised to 40% from 20% previously. At the same time, the board of directors was granted the power to decide on mid-term dividends, and the dividend rate is expected to continue to rise. The company increases dividend rates and values shareholder returns.
Category idea: High-end products continue to advance, and emphasis is being placed on regional explosions. The company believes that high-end products are important for brand building, and the company will continue to advance on the high-end route; after CROP 1.0, 2.0, 3.0, and 4.0, the company will continue to launch fresh-lock products that are more suitable for sale in regional production areas.
In addition, the company will also increase competition for regional products and regional market shares through regional explosions.
Channel idea: Follow the trend to develop Big B customers. Since the second half of 2023, the company has actively adapted to the market trend of increasing chain chain rates and has continued to strengthen its promotion efforts on the TTcom channel. Tetong Catering customers such as Zhang Liang's Spicy Hot Pot and Haidilao achieved steady growth in the first quarter of this year; since this year, the task of expanding the Big B business has been assigned to various marketing regions. The local chain industry and chain system are connected by each marketing region; for cross-regional services, the company headquarters level is connected.
Investment advice: We expect the company's 2024-2026 revenue to be 158.21/175.63/19.0.07 billion yuan, respectively, +12.64%/11.02%/8.22%; net profit to mother will be 16.63/19.11/2.079 billion yuan, respectively, +12.54%/14.90%/8.78%, corresponding PE will be 17/14/13X respectively, maintaining a “buy” rating.
Risk warning: Increased competition in the industry, food safety issues, fluctuating raw material costs.