Research Report Mining | Hu'an Securities: Maintain a "Buy" rating for Tianwei Food, expecting the company's performance to accelerate growth in Q1 2026

Huaan Securities’ research report points out that Tianwei Food’s 2025 performance meets expectations and that the company places importance on shareholder returns. In 2025, the company achieved revenue of RMB 3.45 billion (YoY -0.79%), attributable net profit of RMB 570 million (YoY -8.8%), and non-recurring attributable net profit of RMB 510 million (YoY -10.2%). By product segment, in 2025, revenue from hot pot seasonings / Chinese-style seasoning / winter seasoning / other products was down 3% / -0.2% / -13% / +51% year over year; in 2025 Q4, revenue from hot pot seasonings / Chinese-style seasoning / winter seasoning / other products was down 10% / -14% / +18% / +130% year over year. For 25Q4, weakness in revenue for base sauces and Chinese-style seasoning is expected to be mainly due to a high comparison base plus the timing shift caused by the Spring Festival; the strong growth in revenue for other products is expected to be mainly due to the acquisition consolidation of the subsidiary Yipinwei Yu in September 2025. In 2025, the company’s total cash dividends (including share buybacks) were RMB 598 million, with a dividend payout ratio of 105%. The company also committed that its dividend payout ratio for 2026-2028 will be no less than 80%, reflecting active shareholder returns. It is expected that the company’s performance in 26Q1 has the potential to accelerate growth on a low comparison base; together with the standout shareholder returns, the “Buy” rating is maintained.