Industrial: SHIYUE DAOTIAN (09676) receives a "buy" rating, riding the wave of the healthy food and beverage trend. The effects of the omnichannel layout are already apparent.

Industrial's research report states that it has initiated coverage on SHIYUE DAOTIAN (09676) with a "buy" rating, predicting the company's revenue to be 6.864/8.097/9.546 billion yuan for the years 2025/2026/2027, with a net profit for shareholders of 0.606/0.758/0.972 billion yuan. The firm sees potential in the company's high-end rice and corn business, with increasing revenue and profitability under the trend of healthy eating and drinks. Key points from Industrial include: - SHIYUE DAOTIAN is a leading staple food company in China - The company's main business segments include rice, corn, grains and beans, and other products, as well as dry goods. In the first half of 2025, the company's revenue grew by 16.9% year-on-year to 3.06 billion yuan, with an adjusted net profit increasing by 97.7% to 0.29 billion yuan. In the third quarter of 2025, revenue grew by approximately 25.7%-31.5%, and operating profit increased by around 71.5%-90.5%. - The company's core business is high-end rice, adapting to the trend of healthy and convenient food and continuously expanding product categories. - The company is strategically reducing the sales of low-margin rice, while increasing the sales of high-end rice. The revenue from rice business grew by 21% in the first half of 2025, with a gross profit increasing by 106%. - Corn, with its low-fat characteristics, is becoming a new choice for consumers, and the revenue from corn products increased from 3% in 2023 to 14% in the first half of 2025. - The company's revenue from other products such as grains and beans, and dry goods, accounted for approximately 9% each in the first half of 2025. - The company's multi-channel strategy has been effective, with contributions from modern supermarkets, direct customers, and online channels becoming important revenue sources. Overall, SHIYUE DAOTIAN is well-positioned to benefit from the growing demand for healthy food options and its strategic focus on high-margin products.