Liu Chang, Huafu Securities Co., Ltd., and Tong Jie recently studied and published a research report “The toughness of the square under the pressure of the pressure, focusing on the main business of the main business”.The stock price is 20.31 yuan.

　　Juewei Food (603517)

　　Event: The company released the 2023 annual report and the first quarterly report of 2024. In 2023, operating income was 7.261 billion yuan, a year -on -year+9.64%.The profit was 401 million yuan, a year -on -year+54.51%.2024Q1 achieved operating income of 1.695 billion yuan, a year-on-year-on-year-on-year net profit of 165 million yuan, a year-on-year+20.02%; the net profit of non-returning mother in the single quarter was 156 million yuan, a year-on-year+15.66%.The company’s profitability has picked up.In addition, the company intends to send a dividend to all shareholders of 0.5 yuan/share (including tax), with a total of 515 million yuan (tax included) for a total annual dividend, accounting for 149.71%of the annual net profit returning to the mother.

　　Focus on the main business of duck neck, diversified and coordinated development.

　　The company’s 2023 halogen food sales business/franchisee management business/other business income was 60.50/0.83/974 million yuan, respectively, year -on -year was +7.09%/+11.38%/+33.82%.Food is 5768/282 billion yuan, a year -on -year+6.09%/+32.75%.In 2023, the company overcomes the changes in public consumption habits, focuses on the main business of duck neck, vigorously develops fast -food packaging products, and practices the “new trend, new products, new channels” business strategies to achieve high operating income growthdevelop.The company’s 2024Q1 quarter-quarter halogen food sales business/franchise management business/other business income was 14.08/0.16/236 million yuan, respectively, -9.1%/-15.79%/+7.27%year-on-year.84.82%/0.99%/14.19%, respectively; fresh products/packaging foods in the halogen food sales business were 13.50/580 million yuan, respectively, year-on-year-8.72%/-15.94%, respectively.The revenue of stores in store halogen food sales business increased by 1.22%year -on -year.Affected by the overall domestic consumption downturn, in the first quarter, the main business halogen sales business revenue declined, but the company’s other business income rose steadily, which is expected to actively hedge the impact of the market.In the later period, the company is expected to actively develop overseas markets under the premise of controlling risks and diversify and coordinated development.

　　Establish a cold chain daily supply chain, and the “three -meeting governance” franchise system helps the company to grow steadily.In terms of stores, the company increased by 874 in 2023. As of the end of 2023, the company’s total number of stores in mainland China was 1,5950 (excluding Hong Kong, Macao and Taiwan and overseas markets), and the industry leader was stable.The implementation of the franchise committee system, currently has 116 theater work groups and more than 3,500 franchisees, forming a “three -meeting governance” system, leading the healthy growth of the taste of the taste.

　　Cost side: The overall gross profit margin of the company in 2023 was 24.77%, compared with -0.8pct in the same period last year, and the net interest rate of home was 4.74%, compared with+1.22pct in the same period last year.The company’s 2023 sales expense ratio/management expense rate/R & D expense ratio was 7.44%/6.38%/0.58%, respectively, compared with -2.31/-1.39/0.00pct, respectively.In the situation of decline, the net interest rate has been effectively improved, the management cost rate and sales cost rate have been greatly reduced compared with 2022, and the refined management promotion cost is optimized.The company’s overall gross profit margin in Q1 in Q1 in 2024 was 30.03%, compared with+5.73pct in the same period last year, and the net interest rate was 9.73%, compared with+2.22PCT in the same period last year.The company’s 2024 Q1 sales cost/management cost rate/R & D cost rate was 7.88%/6.27%/0.6%, respectively, compared with +09/-0.04/+0.14pct, respectively.The cost rate is still declining.The company is expected to be optimized by expense side in 2024 to further release performance.

　　Earnings forecasts and investment advice

　　The company is a leading company in the chain, and the mainland of the industry is stable. Combined with the annual reports and the first quarter report, we have adjusted the net profit of the mother of mother 24-25 years. It is expected that the company’s net profit to return to the mother at 24-25 will be 8.14/945 million yuan (the previous time (the previous time24-25 years was 966/2.47 billion yuan), and introduced a 26-year-old net profit forecast of 26 years to 1.068 billion yuan, and the net profit attributable to mother at 24-26 years was+136%/16%/13%, corresponding to 24-26 yearsThe EPS is 1.31/1.52/1.72 yuan, and the corresponding PE is 16/13/12 times, maintaining a “buy” rating.

　　risk warning

　　Risk of fluctuations in raw material prices; risk of integrated competition in the industry; food safety risk

The Star Data Center of Securities is calculated based on the research reporting data released in the past three years. Researcher Wu Wende ’s team of Caitong Securities has deepened the research on the stock. The average accuracy accuracy in the past three years is 72.99%.100 million, the prediction PE based on the current price is 17.51.

The latest profit prediction details are as follows:

In the last 90 days, the stock has given rating a total of 16 institutions, buying 10 rated rating, and increasing 6 rating. In the past 90 days, the average target price of the institution was 24.37.