The C-side rebounded steadily, leaving the bottleneck period and starting again. The sales performance of Double Eleven was impressive, and the online platform increased by 40% + year over year. From rising from 8th place last year to 2nd place in the food category, Empty Spaghetti has maintained its leading position in the fast food pasta segment, and has increased to a certain extent in terms of market share and brand power. The company reorganized its management approach. While changing management in March of this year, it introduced an employee stock ownership plan to enhance team cohesion and sufficient internal incentives, which is expected to continue to generate new sales growth. Kongke focuses on a precise customer base. The brewed pasta launched since this year has broadened the price range of products and expanded consumption channels, consumption scenarios and target groups; new products have extended to frozen products such as pure sausage, reflecting the further expansion of Kongge's product capabilities from room temperature products to frozen products, and the company's capacity boundaries are continuously broadening. In the future, we plan to launch cost-effective and clean label products to focus on the exquisite baby mom customer base while achieving full price coverage.

Based on R&D and innovation, it meets the needs of Big B customers for continuous renewal and iteration, and is expected to transform into a food supply chain in the future. The company covers all Western-style restaurant chains, such as Baisheng China, McDonald's, Domino's, etc., and the degree of cooperation continues to deepen. As the scale of the restaurant chain industry continues to expand, the demand for cost reduction and efficiency is increasing. The company gradually adjusted its supply structure and gradually extended the original compound seasoning category to light cooking solutions, reducing the costs and expenses of B-side customers on the number of professional chefs and kitchen space.

Expanding from catering supply chain companies to food supply chain companies, boosting supermarket and convenience store channels, it is expected to become a new growth curve. In recent years, supermarkets that traditionally charge display fees, entrance fees, etc. are gradually being replaced by warehouse-style member stores, community supermarkets, and snack discounts that actively select products. Domestic supermarkets are gradually being chained, while regional supermarket chains are also shifting from a traditional model to a product selection model, which emphasizes being guided by consumer demand and strictly controlling product quality. Selective management places higher demands on the supplier's ability to innovate, customize and respond quickly. In this context, the company relies on brand endorsements and supply chain advantages, and with excellent product development and innovation capabilities and many years of experience serving Big B customers, and is expected to become one of the biggest beneficiaries in the food and food industry in this round of supermarket channel evolution.

In terms of product development and innovation, the company has a strong R&D team and cooperates with many industry experts to maintain product innovation and diversity. With a rich product matrix and high-quality customer resources and R&D foundation, we are continuously promoting new and rich product lines, broadening the scope of consumption scenarios and channels, and revenue and profit are expected to be further increased and improved.

Profit forecast and investment advice: We expect revenue of 2.602/2.971/3.43 billion yuan, net profit to mother of 0.237/0.279/0.343 billion yuan, and PE of 27.57/23.44/19.05x respectively in 24-26, giving it a “Highly Recommended” rating.

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