Orient Securities: Maintain a "buy" rating on Sanquan Foods as it expands production capacity through overseas expansion.

The Oriental Securities research report pointed out that Three Squirrels Food is accelerating its diversified growth layout by increasing investment in overseas markets and expanding production capacity. On July 21st, the company announced that it plans to invest 280 million Australian dollars to establish a production base in Australia, officially launching its overseas localization strategy. Exporting faces high barriers, with setting up factories in Australia being a breakthrough option, but attention should be paid to the subsequent investment return pace and channel landing capabilities. The construction of the company's project in Taicang is progressing smoothly, expected to strengthen its production capacity layout in East China. After the project is put into operation, it is expected to significantly enhance the company's supply capacity in the East China market, shorten the distribution radius, and reduce logistics costs. In addition, the company's e-commerce team has completed restructuring, focusing on self-operated and customized products. Combined with the restructuring of the company's e-commerce and KA channels, which has shown initial results, and the localization layout in overseas markets by setting up factories in Australia, there is potential to open up new growth space. Based on the current comparable company valuation levels, the company is given a 2025 PE ratio of 18 times, corresponding to a target price of 11.70 yuan, maintaining a "buy" rating.