Guotai Haitong Food & Beverage: Bailong Chuangyuan: Growth Logic Continues, Fundamentals Solid

English summary

Today we expect the sector's capital factors coupled with Coca-Cola's strong zero-sugar product growth mapping drove the limit-up. The company's growth logic continues, short-term focus on pace, full-year dimension expectations unchanged. We expect the company's net profit forecast for 2026-2028 to be RMB 500 million, 660 million, 840 million, +35%, +33%, +28% YoY respectively. 2026Q1 the company achieved revenue of RMB 390 million, +25.32% YoY, net profit attributable to parent of RMB 120 million, +48.10% YoY, and non-GAAP net profit of RMB 120 million, +45.93% YoY. Both revenue and profit achieved relatively high growth YoY, with profit before and after non-recurring items showing sequential ramp-up. High-margin dietary fiber, especially resistant dextrin, grew rapidly, driving significant structural optimization. At the same time, allulose overseas is growing rapidly, and the growth logic is highly sustainable. Allulose licensing approval, capacity expansion advancing orderly, growth momentum sufficient. The company's customized high-margin resistant dextrin products and allulose continue to break through overseas markets and expand customers. With health functional sugar products continuously expanding application categories, domestic and foreign demand is expected to maintain rapid growth.…