JONJEE(SH:600872) Tianfeng Securities·2024-08-08 06:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price set for the next six months [5]. Core Insights - The company has undergone significant management changes, with a new board and leadership team in place, which is expected to lead to improved operational performance [12][20]. - The company aims to achieve a revenue target of 10 billion yuan by 2026, driven by a three-year strategic plan focusing on product development and channel optimization [24][49]. - The company has shown strong performance in Q1 2024, with revenue and net profit increasing by 8.6% and 59.1% year-on-year, respectively [13][15]. Summary by Sections 1. Steady Growth in Seasoning Business - The company has been in operation for over 30 years and has successfully restructured its leadership team, which is expected to enhance strategic execution [12][19]. - In Q1 2024, the company reported a revenue of 1.485 billion yuan and a net profit of 239 million yuan, reflecting a year-on-year increase of 8.64% and 59.07% respectively [13][15]. - The gross profit margin has remained stable, with room for improvement in expense ratios [17]. 2. Future Potential: Strengthening Product and Channel Empowerment - The company has launched a three-year strategic plan aimed at creating a "new kitchen brand" and achieving high-quality development [24]. - The product strategy focuses on soy sauce as the main product, with a "1+N" development strategy to expand into other categories such as chicken powder and oyster sauce [32][34]. - The company is optimizing its channel management and aims to enhance efficiency in its distribution network, particularly in the eastern region of China [41][45]. 3. Real Estate Business Value Analysis - The company plans to gradually divest its real estate business to concentrate on its core seasoning operations, with significant land holdings expected to yield substantial compensation [3][48]. - The company currently has 1,666 acres of developable residential land, with ongoing negotiations for compensation that could amount to 1.23 billion yuan [3][47]. 4. Profit Forecast and Rating - The company targets a revenue of 10 billion yuan and an operating profit of 1.5 billion yuan by 2026, with a projected revenue growth of 12% in 2024 [49]. - The expected revenues for 2024, 2025, and 2026 are 5.768 billion yuan, 6.817 billion yuan, and 8.047 billion yuan, respectively, with corresponding net profits of 803 million yuan, 954 million yuan, and 1.146 billion yuan [49].