Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][4]. Core Views - Post-pandemic revenue has returned to a growth trajectory, with the beverage business identified as the core growth driver and profit margins showing an improving trend [3][8]. - The company has implemented a 100% dividend payout policy since 2018, currently reflecting a dividend yield of 8% based on the stock price [3][8]. - The projected EPS for 2024, 2025, and 2026 is estimated at 0.42, 0.46, and 0.49 CNY respectively, with a corresponding PE of 15X for 2024 [3][8]. Summary by Sections 1. Investment Recommendation - The company operates in a sector with rigid demand for instant noodles and beverages, showcasing strong product innovation capabilities, which suggests it can withstand economic cycles [8]. - Key growth drivers include the increase in short-distance travel boosting beverage market expansion, product innovation catering to younger consumers, and diversification of distribution channels [8]. - Revenue CAGR is expected to be around 5% from 2024 to 2026, with net profit CAGR projected at 7% during the same period [8]. 2. Company Overview - Founded in 1992, the company is a diversified multinational group primarily engaged in food and beverage, with a market capitalization of 30.8 billion HKD as of June 28, 2024 [9]. - The company has experienced a recovery in revenue growth after a stagnation period, achieving a record revenue of 28.59 billion CNY in 2023 [14]. 3. Competitive Advantages - The company emphasizes product innovation, having successfully launched several major products that have become market leaders, such as Assam milk tea and various instant noodle lines [20][22]. - Organizational efficiency has significantly improved, with revenue per employee increasing threefold since 2007, indicating enhanced productivity [24]. 4. Growth Potential - The company is well-positioned to capitalize on the growing trend of short-distance travel, which is expected to drive food and beverage sales [30]. - There is substantial room for expansion in retail outlets, with a focus on enhancing distribution networks and exploring new sales channels, including online platforms [30][31].
统一企业中国：统一首次覆盖：创新驱动成长，盈利改善周期