Li Ziyuan Receives Buy Rating from Minsheng Securities, Shows Confidence in Future Growth
On April 11, Li Ziyuan was granted a buy rating by Minsheng Securities, marking the third research report to highlight the company’s potential in recent weeks. According to the latest report, Li Ziyuan is expected to see a significant increase in net profit attributable to the parent company over the next few years, with projections reaching 2.7/3.1/350 million yuan for 2024-26, representing year-on-year growth rates of +15.6%/13.7%/13.8%.
The report attributes this positive outlook to the company’s expanding presence in the catering sector and its ongoing national expansion efforts. In addition, Li Ziyuan’s commitment to rewarding shareholders is evident in its decision to increase its dividend rate to 80.32% for 2023, up from 41.18% in 2022. This translates to a dividend rate of 3.54% based on the closing price of the annual report disclosure date.
Furthermore, Li Ziyuan recently introduced an equity incentive plan aimed at enhancing employee ownership and motivation. The plan, unveiled on February 22, 2024, will involve up to 379 participants, including directors, supervisors, senior managers, and technical staff. The company plans to transfer 8.5 million shares, accounting for 2.15% of its total share capital, with an initial transfer of 88.26%. Participants will have the opportunity to purchase shares at 7.5 yuan each, with unlocking conditions linked to revenue targets for 2023 and beyond.
Despite these positive developments, the research report also highlights potential risks for Li Ziyuan, including food safety issues, reliance on a single product, volatility in raw material prices, and the possibility of sales falling short of expectations.
In conclusion, Li Ziyuan’s recent achievements and future plans position the company for sustained growth and success in the competitive market landscape.
Source: Financial Industry
Author: Research Reporter