JGJC(SZ:000799) Tebon Securities·2024-07-11 06:30Investment Rating - The report maintains an "Accumulate" rating for the company [3][7]. Core Views - The company is expected to achieve total revenue of approximately 1 billion yuan in the first half of 2024, representing a year-on-year decline of 35.1%. The net profit attributable to shareholders is projected to be between 110 million and 130 million yuan, reflecting a year-on-year decrease of 69.2% to 73.9% [6][7]. - Revenue decline is narrowing, with a 12.3% year-on-year decrease expected in Q2 2024, attributed to improved market conditions and customer payment cycles. However, profit margins are under pressure due to a higher proportion of lower-priced products and increased sales expenses [6][7]. - The company is focusing on long-term development through marketing reforms, emphasizing deepening market penetration in Hunan province and establishing model markets in other regions [6][7]. Financial Summary - The company’s revenue is projected to be 2.68 billion yuan in 2024, down 5.3% year-on-year, with net profits expected to be 407 million yuan, a decrease of 25.8% [8][9]. - The gross profit margin is expected to decline to 73.9% in 2024, with a gradual recovery anticipated in subsequent years [8][9]. - Key financial metrics for 2024 include an EPS of 1.25 yuan and a net asset return rate of 9.2% [8][9].