JONJEE(SH:600872) Huafu Securities·2024-07-10 04:01Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [10]. Core Views - The company is expected to achieve revenue of approximately 2.62 billion yuan in the first half of 2024, a year-on-year decrease of 1.29%, while the net profit attributable to shareholders is projected to be between 315 million and 378 million yuan, marking a significant increase from the previous year [2]. - The second quarter of 2024 is anticipated to see a revenue of about 1.14 billion yuan, reflecting a year-on-year decline of 11.83%, with net profit attributable to shareholders expected to range from 76 million to 139 million yuan, also showing a substantial increase compared to the previous year [2]. - The company is undergoing deep reforms aimed at enhancing its operational efficiency and brand image, which are expected to yield positive results in the long term despite short-term fluctuations in profitability [2]. Summary by Sections Financial Performance - The company reported a net profit of 1.7 billion yuan in 2023, with a projected net profit of 721 million yuan for 2024, reflecting a year-on-year decrease of 57% [3]. - Revenue for 2024 is estimated at 5.53 billion yuan, representing an 8% growth compared to 2023 [3]. - The earnings per share (EPS) is expected to be 0.94 yuan for 2024, down from 2.20 yuan in 2023 [3]. Strategic Initiatives - The company is implementing a three-year strategic plan aimed at achieving 10 billion yuan in revenue and 1.5 billion yuan in operating profit by 2026 [2]. - Ongoing reforms include the establishment of a new organizational structure and the introduction of standardized operational manuals for distributors, which may lead to short-term challenges but are expected to enhance long-term performance [2]. Market Position - The company is positioned in the seasoning and condiment industry, facing challenges such as weak consumer demand and seasonal fluctuations in the restaurant sector [2]. - Despite the current pressures, the company aims to leverage its reform initiatives to drive future growth and achieve its ambitious revenue targets [2].