Recently, Juewei Food, a leading company in the leisure halogen products industry, announced on February 21, 2024 that it plans to spend no less than 200 million yuan and no more than 300 million yuan of its own funds to repurchase shares, aiming to reduce the company's registered capital and show its recognition of its own intrinsic value and firm confidence in future development prospects.
In terms of financial performance, Juewei Food's financial report for the third quarter of 2023 is outstanding. In the first three quarters, the revenue was 563.1 billion yuan, a year-on-year increase of 999%, and the net profit attributable to the parent company increased significantly to 39 billion yuan, a year-on-year increase of 7757%。Among them, the single-quarter operating income in the third quarter was 193.2 billion yuan, a year-on-year increase of 826%, profitability gradually enhanced, and the net profit attributable to the parent company and the net profit deducted from the non-attributable parent increased by 22 respectively in a single quarter10% and 2032%。
In terms of sub-channel business, the sales of marinated food maintained a steady growth trend, and the income from franchisee management and other main businesses showed an upward trend. It is worth noting that thanks to the effective implementation of cost reduction and efficiency improvement measures and the decline of raw material duck by-products**, the company's gross profit margin in the third quarter rose sharply to 2578%, an increase of 218 percentage points, a month-on-month increase of 551 percentage points, the cost pressure has been significantly eased.
In addition, Juewei Food strengthened brand promotion and drainage through new ** platforms such as Douyin and Kuaishou, and actively expanded its store network, adding 360 new stores in the third quarter, and a total of about 1,230 new stores in the first three quarters. At the same time, the company continued to deepen informatization and digital transformation, built a full-scenario O2O business model, optimized procurement strategy and operational efficiency with the help of big data analysis, continuously improved the single-store model and product structure, and promoted the steady improvement of the overall operation.
The launch of this large-scale share repurchase program not only reflects the strong confidence of the company's management in the company's future development, but also helps to boost investor sentiment. In view of the gradual recovery of the current economic environment and the emergence of the company's internal cost reduction and efficiency improvement results, despite the short-term challenges, Juewei Food, as the industry leader, is expected to further consolidate its market share and resist external risks by virtue of its strong chain advantages, channel layout and product innovation capabilities.
Based on the latest performance and market expectation adjustments, the 2023-2025 earnings of Juewei Food** are slightly lowered, and the EPS is expected to be 092 yuan, 152 yuan, 184 yuan. The PE multiples corresponding to the current share price are 24 times, 15 times and 12 times respectively, indicating that the company's valuation level is attractive. With the continuous improvement of the cost side and the in-depth promotion of the digital strategy, Juewei Food is expected to usher in a broader development space.