JONJEE(SH:600872) Chang Jiang Shang Bao·2025-06-02 22:38Core Viewpoint - Zhongju Gaoxin (600872.SH), known as the "second in soy sauce," is facing dual pressures on its operations and stock price, with significant declines in both revenue and net profit [1][5]. Financial Performance - In Q1 2024, Zhongju Gaoxin reported revenue of approximately 1.1 billion yuan and a net profit attributable to shareholders of about 180 million yuan, representing year-on-year declines of approximately 26% and 24% respectively [2][5]. - For the full year 2024, the company anticipates a revenue increase of over 7%, but a drastic net profit decline of 47% [2]. - The revenue for the subsidiary Meiwai Xian in 2024 was 5.075 billion yuan, showing a modest year-on-year growth of only 2.9% [3]. Market Comparison - In contrast, leading competitor Haitian Flavoring (603288) achieved a net profit of 2.202 billion yuan in Q1 2024, marking a year-on-year increase of 14.77% [6]. - Zhongju Gaoxin's net profit has been declining while competitors are experiencing growth, widening the gap with Haitian Flavoring [7]. Internal Challenges - The company is currently dealing with internal conflicts, including a delayed board election and ongoing disputes related to shareholder control [11][12]. - The internal strife has hindered the company's ability to execute its growth plans effectively, including the ambitious goal of generating 10 billion yuan in revenue for Meiwai Xian by 2026 [13]. Strategic Initiatives - In 2024, Zhongju Gaoxin initiated a marketing transformation, shifting from a centralized management model to a division-controlled model, which has faced challenges in execution [9]. - The company has resolved a long-standing equity issue with Guangdong Chubang Food Co., which is now a wholly-owned subsidiary, but this has not translated into improved financial performance [7][8].