Dongfang Securities: Maintains "Buy" rating on SANQUAN FOODS as overseas expansion and capacity expansion increase

Dongfang Securities research report points out that with increased overseas investment and capacity expansion, SANQUAN FOODS is accelerating its diversified growth layout. On July 21, the company announced plans to invest AUD 280 million to establish a production base in Australia, officially launching its overseas localization strategy. The export entry barriers are relatively high, and "setting up a factory in Australia" has become a viable breakthrough, but attention should be paid to the subsequent investment return rhythm and channel implementation capability. The company's Taicang project is progressing smoothly and is expected to strengthen its capacity layout in East China. After the project is put into production, it is expected to significantly enhance the company's supply capacity in the East China market, shorten the delivery radius, and reduce logistics costs. In addition, the company's e-commerce team has completed its restructuring, with self-operated and customized products both making efforts. Combined with the initial effectiveness of the company's organizational restructuring in e-commerce and KA channels, and the localization layout achieved through setting up a factory in Australia, it is expected to open up new growth space. Based on the current valuation levels of comparable companies, a 2025 PE of 18 times is given to the company, corresponding to a target price of 11.70 yuan, maintaining a "buy" rating