Overview

• US Asian food distributor's Q1 revenue rose 4.5%, beating analyst expectations

• Adjusted net income for Q1 fell 3.6% to $3.4 mln

• Gross margin declined to 16.2% due to higher seafood sales and increased landed costs

Outlook

• Company did not provide specific guidance for current or future quarters

Result Drivers

• SEAFOOD AND COMMODITY VOLUME - Revenue growth was primarily due to higher volumes and improved pricing in seafood, followed by increased commodity volumes

• LOWER MARGIN PRODUCT MIX - Gross profit and margin declined due to increased sales of lower margin products like seafood and higher landed costs

• OPERATING EXPENSES - Distribution, selling and administrative expenses fell mainly due to increased net revenue and lower professional fees and bad debt expense, partially offset by higher auto & truck expenses and depreciation

Company press release: ID:nGNX58ND34

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$312 mln	$308.46 mln (3 Analysts)
Q1 Gross Margin		16.20%
Q1 Gross Profit		$50.50 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Hf Foods Group Inc is $6.00, about 217.5% above its May 8 closing price of $1.89

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

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