背靠朝阳赛道，产品渠道稳步推进。渠道端，在零售渠道上，公司持续推进门店扩张力度，以华东区域为重心，加密线下销售网络，由一、二线城市向三、四线城市及乡镇进行下沉，优化门店经营能力，鼓励有能力的店主开多店。在批发渠道上，深化酒店餐饮、团餐客户合作，实行“1+N”的模式，通过与不同区域的大经销商合作，开发大客户，以点带面实现资源开发。商超等渠道上也将同步发力。Event: The company released its 2024 three-quarter report. In the first three quarters of 2024, the company achieved revenue of 0.511 billion yuan, -17.50%; net profit to mother 0.068 billion yuan, or -36.83% year-on-year; net profit after deducting non-attributable net profit of 0.066 billion yuan, or -36.79% year-on-year. In Q3 alone, the company achieved revenue of 0.183 billion yuan, -9.19% year over year; net profit to mother 0.025 billion yuan, -21.81% YoY; net profit without return to mother 0.025 billion yuan, or -22.28% YoY.
Demand is recovering weakly, and there is still pressure on the revenue side. By product, in the 3rd quarter of 2024, revenue for beef/poultry/pork/lamb/aquatic fish/aquatic shrimp/other products was 0.76/0.34/0.15/0.02/0.027/0.021/0.006 billion yuan, respectively, compared to -5.31%/-7.65%/-6.6%/-61.55%/-7.95%/-6.19%/-37.17%, respectively. By channel, in the 3rd quarter of 2024, franchisee store/dealer/supermarket/wholesale channel revenue was 0.98/0.024/0.01/0.049 billion yuan, respectively, -10.09%/-2.24%/+9.18%/-8.5%, respectively. In terms of investment promotion, in the 3rd quarter of 2024, the company opened net franchise/dealer/supermarket customers/wholesale customers - 25/10/3/17 to 1753/756/97/576.
Under the influence of multiple factors, profitability is under pressure in stages. In 3Q24, the company's gross margin was 25.91%, -0.34pcts; the company's sales/management/ R&D/ finance ratio was 4.06%/7.17%/0.48%/-0.29%, -1.79/+1.02/+0.01/+3.91 pcts year over year. Taken together, the company's profitability is still under pressure.
Backed by the Chaoyang Circuit, the product channel is progressing steadily. On the channel side, in terms of retail channels, the company continues to promote store expansion efforts, focusing on the East China region, encrypting the offline sales network, sinking from Tier 1 and 2 cities to Tier 3 and 4 cities and townships, optimizing store management capabilities, and encouraging capable store owners to open multiple stores. In the wholesale channel, we will deepen customer cooperation for hotels, restaurants, and group meals, implement the “1+N” model, develop major customers through cooperation with major dealers in different regions, and achieve resource development on an ad hoc basis. Channels such as supermarkets will also gain strength at the same time.
On the product side, the company will continue to develop products with leading quality and cost in the future to create diversified products.
Investment advice: Maintain a “buy” rating. According to the three-quarter report, considering the slow recovery in consumer demand, the rate of improvement in the penetration rate of prepared dishes and the speed of the company's channel expansion are relatively slow, we expect the company's 24-26 revenue to be 0.681/0.708/0.753 billion yuan (previously 0.785/0.82/0.869 billion yuan), and net profit of 0.088/0.093/0.099 billion yuan, respectively (previously 0.098/0.101/0.109 billion yuan) yuan). Considering that the company is a leader in the pre-prepared food segment, it has room for growth for a long time and maintains a “buy” rating
Risk warning: Channel expansion falls short of expectations; fluctuating raw material prices; food safety incidents.
