Kaiyuan Securities has released a research report maintaining an "Overweight" rating on WL DELICIOUS (09985). The company's stockpiling for the 2026 Spring Festival peak season commenced in January. The Lunar New Year holiday is a critical period for household food and beverage consumption, with activities such as gift purchasing and family gatherings driving a concentrated release of demand for mass-market product stockpiling. With the 2026 Spring Festival falling in mid-February, and coupled with the macroeconomic policy backdrop aimed at expanding domestic demand and stimulating consumption, the peak season stockpiling at the beginning of the year is expected to catalyze performance. Furthermore, the company has ample reserves of new konjac flavor products, and its noodle products have introduced celebrity endorsements, which are anticipated to contribute additional sales growth. The brokerage maintains its profit forecasts, projecting the company's net profit attributable to the parent for 2025-2027 to be RMB 1.38 billion, RMB 1.70 billion, and RMB 2.06 billion, representing year-on-year growth of 29.2%, 23.1%, and 21.1%, respectively. The current stock price corresponds to P/E ratios of 19.6x, 15.9x, and 13.1x for those years. The main viewpoints of Kaiyuan Securities are as follows:
The introduction of celebrity endorsements for new spicy strip products and new konjac flavors are enhancing the company's momentum. As a leading brand in the domestic spicy snack market, the company's focus on blockbuster products has fueled its rapid growth. For its noodle products, the company concentrates on core product lines, including large and small spicy sticks, 'Mala' spicy strips, and 'Kiss Burn' products. New flavors such as crayfish and spicy beef were launched in 2025, accompanied by endorsements from popular celebrities, signaling expectations for steady growth. The konjac category exhibits high growth potential, and the brand power of WL DELICIOUS's 'Moyu Shuang' (konjac shuang) is deeply ingrained after years of market presence. In the second half of 2025, the company introduced entirely new flavors like high-fiber beef liver菌 and Dai-style pounded chicken feet, enriching its product matrix. It is anticipated that with a more diversified product portfolio, the company's konjac category is poised to maintain strong growth momentum.
The company achieves full-channel coverage, actively embraces emerging channels, and implements refined management of expense allocation. On the channel front, the company continues to enhance per-outlet purchasing power within traditional offline supermarket and distribution channels. It strategically embraces emerging offline channels, engaging in deep collaborations with variety snack stores and membership-only warehouses like Sam's Club, launching customized specifications and new flavors. Initial efforts are also being made in overseas Southeast Asian markets. Online, the company capitalizes on opportunities presented by emerging e-commerce platforms such as Douyin and Kuaishou. Regarding expenses, the company allocates more resources towards new product launches and core retail terminals. Celebrity endorsements are boosting the company's brand power, thereby enhancing its overall operational momentum, with profits expected to achieve stable growth.
Risk warnings include the risk of rising raw material prices, the risk of new product sales falling short of expectations, and food safety risks.
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