Double Eleven's sales performance was outstanding. Empty Pasta maintained its leading position in the fast food pasta segment and became the second growth curve. According to third-party data, Quanshuang11's full-cycle online sales volume exceeded 0.16 billion+, with a year-on-year increase of 40% +. It ranked first in the Tmall, Douyin, and JD pasta categories for five consecutive years, and ranked first in pasta retail sales in the country for 3 consecutive years, with cumulative sales exceeding 0.2 billion boxes. Among them:

1) Tmall's sales exceeded 100 million in the Shuang11 cycle, ranking first in the convenient fast food category and second in the food category; 2) Douyin led the live broadcast room in terms of strength, leading the self-broadcast list in the grain, oil, rice, and noodle category.

Develop online channels to further expand the C-side market. Through the e-commerce direct management model, self-operated stores are set up on third-party online platforms such as Tmall, Taobao, JD, Douyin, and Xiaohongshu, and the coverage of business and consumption scenarios is continuously expanded by combining new product research and development. During Double Eleven, 1) the overall exposure of the brand exceeded 1 billion; 2) the number of new members increased by more than 30w+, and the number of members on the entire network has now reached about 950w; 3) Talent live streaming sales increased 70% + over the same period last year. From the product side, during the Double Eleven period, the main focus was on empty engraved classic candlelight pasta, and Disney's co-branded series had the highest sales. New products launched by the company since this year, such as stewed pasta, stir-fried pork sausage, and crab yolk pasta, have received good market feedback. At the same time, the company paid attention to ESG management. Among them, sales of eco-friendly packaging increased 35% year over year, saving about 85.7% of paper.

BC-end two-wheel drive, long-term value does not change. The company has a rich product matrix, high-quality customer resources and R&D foundation, and continues to promote new and rich product lines to broaden consumption scenarios and coverage. Looking at the first three quarters of this year, the company's revenue scale continued to expand, profit levels remained stable, and profit growth was slightly affected due to poor progress in the baking business as expected. In the future, with the gradual improvement of the baking business and the recovery of the C-side business, combined with the continued layout of the B-side, revenue and profit are expected to increase and improve further next year.

Profit forecast and investment recommendations: We expect to achieve revenue of 2.602/2.93/3.383 billion yuan, net profit to mother of 0.237/0.275/0.339 billion yuan, PE 24.32/20.94/17.01x respectively, maintaining the “recommended” rating.

Risk warning: risk of macroeconomic growth falling short of expectations; risk of increased industry competition; risk of food safety.