Incident: 24Q1-3 achieved revenue of 2.364 billion yuan, a year-on-year increase of 5.84%; net profit to mother of 0.432 billion yuan, an increase of 34.96% year-on-year. 24Q3 achieved revenue of 0.897 billion yuan, a year-on-year increase of 10.93%; net profit to mother of 0.186 billion yuan, a year-on-year increase of 64.79%.

Revenue growth continued to improve, and the growth of sausage and bacon seasoning exceeded expectations. 24Q3 Company's Hot Pot Seasoning/Chinese Dish Seasoning/Sausage and Bacon Seasoning/Other Revenue of 3.03/0.385/0.186/0.022 billion yuan (YoY +1.14%/18.07%/19.68%/-2.96%). Among other revenue, major categories achieved good growth; Sausage and bacon seasoning grew close to 20%.

Maintaining high growth online and recovering offline growth. The 24Q3 East/South/West/North/Central revenue was 1.83/0.83/0.319/0.06/0.251 billion yuan respectively (YoY +8.93%/+17.07%/+12.80% /-5.

91%/+14.95%), with the exception of the North, achieved relatively rapid growth. 24Q3 offline/online was 7.56/1, respectively.

At 3.9 billion yuan (+5.98%/55.38%), online revenue accounted for +4.39 percentage points to 11.15%.

The number of 24Q1-3 dealers decreased by 21 to 3129 month-on-month, and the average revenue of 24Q1-3 dealers was +6.77% month-on-month to 0.7546 million yuan/house, improving dealer quality.

Profitability has increased significantly, and expenses have been reduced. The company's gross margin/net margin changed by +0.76/+7.33 percentage points year-on-year in 24Q3 to 38.83%/21.19%, respectively; the net interest rate increased significantly, mainly due to reduced expenses. Sales Expense Rate/Overhead Expense Rate/Financial Expense Ratio changed by -7.78/ -0.73/0, respectively.

29 percentage points to 7.81%/5.19%/-0.06%.

Investment advice: The company continues to deepen the business/business support model, supplement the B-side after acquiring food extracts, and continue to launch a rich product matrix with new regional products; Q4 is a traditional peak season, and demand for hot pot ingredients is expected to recover. According to the Q3 quarterly report, we believe that as we enter the peak season, the company's performance growth is accelerating, so the profit forecast was slightly raised. The estimated 24-26 revenue is 3.465/3.89/4.339 billion yuan (previous value was 33.95/39.10/44).

5.6 billion yuan), up 10%/12%; net profit to mother was 0.593/0.691/0.799 billion yuan (previous value was 0.547/0.657/0.771 billion yuan), up 30%/17%/16%. Corresponding PE was 28X/24X/21X, respectively, maintaining the “buy” rating.

Risk warning: Industry competition intensifies; consumer demand falls short of expectations; risk of fluctuating raw material prices.