Anjoy Foods shareholder meeting shows growth momentum remains intact, with new products, channels and overseas expansion as the core support
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Anjoy Foods shareholder meeting shows growth momentum remains intact, with new products, channels and overseas expansion as the core support
Goldman Sachs believes that after strong Q1 growth, Anjoy Foods is still likely to maintain solid growth in Q2 and Q3, driven mainly by its new-product matrix, distributor enablement, supermarket customization, the sausage second growth curve, and expansion into halal and overseas markets.
- Management expects sales in Q2 and Q3 to continue growing at a healthy pace, though growth will slow from the unusually high Q1 base.
- New products contributed about Rmb500mn in revenue, while second-tier new products added nearly 10 percentage points to growth; key categories include fish paste products, Linglong rolls, Meat More sausage, the Six Little Dragons dough line, and crispy pork.
- The company remains committed to a large-distributor model, empowering core distributors with WMS, fast-moving consumer goods software, and short-form video marketing; institutional catering, hot pot, and barbecue channels have performed strongly.
- Sausage tax-inclusive revenue reached Rmb1.3bn and is viewed as a second growth curve, with the company building automated specialty factories across five production bases.
- The halal sub-brand Anzhai aims to generate more than Rmb100mn in revenue within 10 months, and the overseas path is extending from Hong Kong and Macau to Southeast Asia, then to Europe and the U.S.
Report interpretation
Overview
This report is Goldman Sachs' meeting minutes from Anjoy Foods' annual general meeting held in Xiamen on May 21, 2026. The core conclusion is that the company's strong Q1 performance was not simply the result of a recovery in foodservice demand, but was jointly driven by product innovation, channel execution, and digital enablement for distributors. Management expects solid growth to continue in Q2 and Q3, although the growth rate will slow from the exceptionally high Q1 base.
Core views
The report's key views are: first, foodservice demand has continued to recover since Q4 last year, providing a tailwind for the company's B-end and institutional catering channels; second, the company does not rely on a significant increase in the number of distributors, but instead strengthens its large-distributor system and increases penetration of key distributors in institutional catering, hot pot, and barbecue channels; third, the sausage business has already formed a tax-inclusive revenue scale of Rmb1.3bn, becoming a second growth curve; fourth, the supermarket customization unit is taking on large retail client orders such as Sam's Club; fifth, sub-brands such as Anzhai and the overseas footprint are expected to unlock additional growth.
Analysis framework
The report is mainly based on management discussions at the annual general meeting, a breakdown of channel and product operations, the target-price valuation methodology, and Goldman Sachs' research disclosure framework. On valuation, the A-share target price uses a 16x target P/E applied to Goldman Sachs' 2026 expected EPS, while the H-share target price applies a 15% discount to the A-share valuation multiple.
Methodology notes
A股 target price
The A-share 12-month target price of Rmb106.0 is based on Goldman Sachs' 2026 expected EPS and a 16x target P/E.
H股 target price
The H-share 12-month target price of HK$98.0 is based on a 15% discount to the A-share valuation multiple, referencing the average H-A discount for consumer stocks over the past three months.
Channels, blockbuster products, strategy, culture, brand and digitalization
The company attributes consumer stickiness to six dimensions: channels, blockbuster products, strategy, culture, brand and digitalization, and uses a high-quality, mid-price positioning to avoid direct competition on supermarket dumpling shelves.
Growth, financial return, valuation multiple and composite ranking
Goldman Sachs' factor framework compares stocks with the market and industry peers through growth, financial return, valuation multiples and composite indicators.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- Anjoy Foods A-share (603345.SS)One of the covered securities in the report
- Strengths
- New-product matrix, channel execution, the sausage second growth curve and the foodservice recovery support growth.
- Weaknesses
- Upside to target price is relatively limited, with a Neutral rating.
- Comparison
- The A-share target price is based on a 16x 2026 expected P/E; the H-share is priced at a discount to the A-share valuation.
- Risks
- Slower-than-expected growth in the frozen food business, changes in consumer preferences, raw material cost volatility, food safety issues, and pricing pressure from competition.
- Anjoy Foods H-share (2648.HK)One of the covered securities in the report
- Strengths
- Rated Buy, with greater upside potential relative to the current price.
- Weaknesses
- H-share valuation is benchmarked to the A-share with a discount, and liquidity plus changes in the H-A discount may affect pricing.
- Comparison
- The H-share target price is based on a 15% discount to the A-share valuation multiple.
- Risks
- Slower-than-expected frozen food growth, changing consumer preferences, rising raw material costs, food safety issues, and intensifying competition.
Key data
- New product revenue contributionApproximately Rmb500mnPure new products made a meaningful contribution to Q1 growth.
- Growth contribution from second-tier new productsClose to 10 percentage pointsRecently launched strategic blockbuster products, while not entirely new, contributed significantly to growth.
- Sausage revenue scaleRmb1.3bn tax-inclusive revenueThe sausage business is viewed by management as a second growth curve.
- B-side/C-side revenue mixAbout 60:40The company has improved its mix from a previously more B-side-heavy 80:20 structure to a healthier 60:40.
- Anzhai revenue targetMore than Rmb100mn within 10 monthsThe halal sub-brand operates independently and requires distributors to generate incremental sales.
- A股 target priceRmb106.0Rated Neutral, based on a 16x P/E applied to 2026 expected EPS.
- H股 target priceHK$98.0Rated Buy, with a 15% valuation discount relative to the A-share multiple.
Impact & implications
If new products and channel enablement continue to deliver, Anjoy Foods may be able to reduce revenue volatility between the traditional winter hot-pot peak season and the summer off-season, while building multiple growth curves through sausages, dough products, supermarket customization, and halal/overseas business. For investors, the H-share target price implies greater upside, while the A-share has clear operational improvement but remains rated Neutral, reflecting limited relative valuation and return potential.
Risks
- Growth in the frozen food business could be slower or faster than expected.
- Consumer preferences may change.
- Raw material costs may rise or fall more than expected.
- Food safety incidents.
- Pricing pressure caused by intense industry competition.
- Overseas expansion involves uncertainty around certification, joint-venture partners, localized supply chains and market acceptance.
What to watch
- Whether sales growth in Q2 and Q3 remains solid and how much it slows from Q1.
- Sales performance of seasonal categories such as crayfish, supported by sporting events.
- Turnover and penetration effectiveness of the large-distributor system in institutional catering, hot pot and barbecue channels.
- Whether custom orders from supermarket chains such as Sam's Club can continue to scale up.
- The buildout and capacity ramp of automated specialty factories across the five sausage bases.
- Whether the Anzhai halal brand can achieve more than Rmb100mn in revenue within 10 months.
- Progress in certification, joint ventures and localization in overseas markets such as the Philippines and Indonesia.