Fuling Zhacai(002507) 华泰证券·2025-04-27 09:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 16.50 [7][8]. Core Views - The company's Q1 performance was subdued, with revenue and net profit showing a decline due to low inventory levels during the off-season. However, the company expects a recovery in the second and third quarters as the macroeconomic environment improves and the integration of acquisitions is anticipated to expand its operational scope [1][4]. - The company reported a Q1 revenue of RMB 710 million, a decrease of 4.8% year-on-year, while net profit attributable to the parent company was RMB 270 million, a slight increase of 0.2% year-on-year. The lower revenue was attributed to reduced household stockpiling post-pandemic [1][2]. - The company is optimistic about its future growth driven by both internal and external factors, including the successful acquisition of Weizimei, which specializes in Sichuan-style compound seasonings and pre-prepared dishes, expected to create synergies in channels and product offerings [3][4]. Summary by Sections Q1 Performance - In Q1 2025, the company experienced a revenue decline of 4.8% year-on-year, attributed to off-season low inventory levels. The company aims for an 8% revenue growth for the year, driven by price and channel strategies, as well as expansion in the catering sector [2][4]. - The gross margin improved to 56.0%, up 3.8 percentage points year-on-year, mainly due to lower procurement costs for green vegetables [2]. Acquisition and Future Outlook - The company plans to acquire 51% of Weizimei, which focuses on customized development and sales of Sichuan-style seasonings and pre-prepared dishes. This acquisition is expected to enhance channel cooperation and product expansion [3][4]. - The company forecasts EPS of RMB 0.75, 0.82, and 0.89 for 2025, 2026, and 2027 respectively, with a target PE ratio of 22x for 2025 [4][6]. Financial Projections - The company projects a revenue of RMB 2.578 billion for 2025, with a year-on-year growth of 8%. The net profit attributable to the parent company is expected to reach RMB 863.76 million, reflecting an 8.06% increase [6][18]. - The report highlights a stable financial position with a projected ROE of 9.52% for 2025 and a decreasing trend in PE ratio from 19.29 in 2023 to 18.46 in 2025 [6][18].