JGJC(000799) Huaxin Securities·2024-06-30 23:00Investment Rating - The report maintains a "Buy" investment rating for the company [5] Core Views - The company is focusing on product strategy to stabilize the value of high-end products, with the launch of the Jiachen version of Neican enhancing brand value and a noticeable recovery in the price of the old version [3] - The company is concentrating on regional markets, particularly in Hunan, and is emphasizing banquet scenarios to drive sales growth [4] - The ongoing expense reform is expected to yield long-term growth, with short-term performance under pressure, and the company is projected to see an increase in earnings per share (EPS) from 1.50 yuan in 2024 to 2.25 yuan in 2026 [5] Summary by Sections Basic Data - Current stock price is 43.87 yuan, with a total market capitalization of 143 billion yuan and total shares outstanding of 325 million [1][2] Financial Forecast - The company’s main revenue is projected to grow from 2,967 million yuan in 2024 to 3,757 million yuan in 2026, reflecting a growth rate of 4.9% in 2024 and 15.0% in 2026 [8] - The net profit attributable to shareholders is expected to decrease to 487 million yuan in 2024 but recover to 732 million yuan by 2026, with growth rates of -11.2% and 23.4% respectively [8] - The diluted EPS is forecasted to be 1.50 yuan in 2024, increasing to 2.25 yuan in 2026, corresponding to price-to-earnings (P/E) ratios of 29, 24, and 20 times for the respective years [5][8] Market Performance - The company has shown a significant focus on banquet market development, with over 10,000 banquet events held in Changsha last year, aligning with the current growth trend in pricing [3][4]