JONJEE(SH:600872) Guan Cha Zhe Wang·2025-04-14 09:08Core Viewpoint - The company Zhongju Gaoxin (600872.SH), known for its "Chubang" soy sauce brand, is facing challenges with a significant drop in net profit while attempting to revitalize its brand and achieve ambitious revenue goals through strategic changes and potential acquisitions [1][3][8]. Financial Performance - In 2023, Zhongju Gaoxin reported a revenue of 5.519 billion yuan, a year-on-year increase of 7.39%, but the net profit attributable to shareholders plummeted by 47.37% to 893 million yuan [3][4]. - The company's core subsidiary, Meiwai Xian, achieved a revenue of 5.075 billion yuan, accounting for 91.95% of the total revenue, with a net profit increase of 29.48% to 775 million yuan [1][3]. - The decline in net profit is attributed to legal settlements and the reversal of provisions made in the previous year, while the adjusted net profit (扣非净利润) grew by 27.97% to 671 million yuan due to cost-cutting measures [3][4]. Market Position and Challenges - Meiwai Xian's revenue growth has been inconsistent over the past five years, with a compound annual growth rate (CAGR) of only 0.5% for revenue and -4.67% for net profit [4][5]. - The soy sauce segment, which constitutes about two-thirds of Meiwai Xian's revenue, has shown declining growth rates, indicating a potential issue of "selling more but earning less" [5][6]. - Zhongju Gaoxin's market share in the Chinese soy sauce market is only 3.02%, significantly lower than competitors like Haitian Flavoring and Food, which holds nearly 13% [5][6]. Strategic Initiatives - The company aims to "recreate a new Chubang" with a three-year strategic goal to achieve 10 billion yuan in revenue and 1.5 billion yuan in operating profit by 2026 [6][8]. - Zhongju Gaoxin is divesting from non-core businesses, such as real estate and mechanical parts, to focus on its main business of health food products [6][7]. - The company is also exploring acquisitions to expand its market presence, particularly in the vinegar sector, with potential targets identified [8]. Shareholder Dynamics - The influence of the "Baoneng system" has diminished, with its shareholding dropping below 5%, leading to a more stable governance structure for Zhongju Gaoxin [7][8]. - Recent shareholder changes include a reduction in holdings by three of the top ten shareholders, indicating a shift in the ownership landscape [6][7].