TINGYI(00322) 国泰君安·2024-07-09 23:31Investment Rating - The report assigns an "Accumulate" rating to the company [1][7]. Core Views - The company is expected to maintain a net profit CAGR of around 8% from 2024E to 2026E, with a current dividend yield of 6% [3][7]. - The company has a strong market position in the instant noodle and beverage sectors, with a robust brand pricing power and a diversified product portfolio [3][7]. - The new consumption trends are driving industry expansion, with stable growth in instant noodles and diversified beverage offerings [3][7]. Summary by Sections Investment Recommendations - The company has consistently provided high shareholder returns, maintaining a dividend payout ratio of 100% or more, with a current dividend yield of 6% [3][7]. - The company has developed several billion-dollar products and has a strong brand pricing capability [3][7]. - The expected EPS for 2024, 2025, and 2026 is 0.61, 0.65, and 0.70 CNY respectively, with a current PE ratio of 14X for 2024 [3][7]. Company Overview - Founded in 1992, the company has grown significantly, achieving revenue of 804.2 billion CNY and a profit of 31 billion CNY by 2023 [3][8]. - The main revenue sources are instant noodles (40%) and beverages (60%) [3][12]. - The company has maintained a gross margin around 30% and a net margin fluctuating between 2% and 7% [3][12]. Competitive Advantages - The company holds a leading market share in the instant noodle sector (approximately 45%) and in the RTD tea market (approximately 50%) [3][19]. - The company has a well-established distribution network with over 4 million retail outlets, significantly surpassing competitors [3][19]. - The company has demonstrated strong brand pricing power, having raised prices multiple times over the past five years [3][24][26]. Growth Potential - The company is expected to see stable growth in the instant noodle segment and moderate growth in the beverage segment, driven by new consumption trends and product innovations [3][7]. - The anticipated CAGR for revenue from 2024 to 2026 is around 4% [3][7]. - The company is well-positioned to benefit from the increasing demand for convenient food options and health-conscious beverages [3][12].