WFCF Latest Report

Performance Review

As of December 31, 2024, Where Food Comes (stock code: WFCF) recorded a total operating revenue of RMB66.62 million, a slight decrease of 0.13% from RMB67.31 million as of December 31, 2023. Despite the slight decline in total operating revenue, pre-tax profit and net profit showed a growth trend, indicating that the company has achieved certain results in improving profitability, even in the face of declining revenue through cost control and operational efficiency.

Key Financial Data

1. WFCF's total operating revenue in 2024 was RMB66.62 million, a decrease of 0.13% from RMB67.31 million in 2023.

2. Sales costs increased from RMB37.24 million to RMB38.61 million, up about 3.65%, which may put pressure on profits.

3. Despite the slight decline in operating revenue, pre-tax profit and net profit showed a growth trend, indicating the company's success in controlling costs and improving efficiency.

4. Intensified competition and changes in the macroeconomic environment may be the main factors leading to the decline in revenue.

Peer Comparison

1. Industry-wide analysis: In the catering industry, overall operating revenue is greatly affected by market demand fluctuations, changes in consumer preferences, and competitive environments. If other companies in the industry also experience a decline in operating revenue, it may reflect the overall economic pressure in the industry. According to existing data, the competition in the catering industry has intensified in 2024, with significant price competition and homogenization, leading to more cautious and conservative consumer spending expectations.

2. Peer evaluation analysis: Compared with other companies in the same industry, WFCF's decline in operating revenue is relatively small, indicating that the company still maintains a certain market share in the current competitive environment. However, the intensified overall industry competition may pose a threat to future revenue growth.

Conclusion

This analysis shows that WFCF's operating revenue has declined, but the growth in pre-tax profit and net profit indicates that the company has achieved certain results in cost control and improving operational efficiency. Intensified competition and unfavorable changes in the macroeconomic environment may be the main reasons for the decline in revenue. Nevertheless, WFCF's performance is relatively stable in the same industry and still possesses certain market competitiveness.

Opportunities

1. Through optimizing product mix and sales strategies, WFCF can gain more market share in the fierce competition.

2. Strengthening brand building and customer relationship management can enhance customer loyalty and thus increase sales revenue.

3. Leveraging the high penetration rate of online channels, WFCF can expand its delivery and distribution services to meet consumers' demand for convenient consumption.

4. Focusing on the growth of fresh products, especially pork products, can further enhance the company's market share in this category.

Risks

1. Continued market competition may lead to a decline in profit margins, especially in the context of intensified price wars.

2. Slowing macroeconomic growth may affect consumers' actual income and willingness to spend, thus suppressing the demand for dining out.

3. Rising costs, especially increased rental and labor costs, will squeeze the profit space of catering enterprises.

4. Industry consolidation may lead to the exit of some small and medium-sized enterprises, further exacerbating market instability.