JONJEE(SH:600872) GF SECURITIES·2024-08-09 10:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.70 CNY, compared to the current price of 19.80 CNY [3]. Core Views - The company reported a revenue of 2.618 billion CNY for the first half of 2024, a year-on-year decrease of 1.35%, while achieving a net profit of 350 million CNY, marking a return to profitability. The non-recurring net profit was 339 million CNY, up 14.53% year-on-year, aligning with the forecasted levels [2]. - The company is undergoing channel reforms while facing short-term demand pressures. In Q2 2024, revenue from the main product line, Meiwai Xian, was 1.095 billion CNY, down 12.12% year-on-year, primarily due to weak industry demand and intensified competition [2]. - The company is focusing on optimizing its distribution channels and managing expenses, with a net profit margin of 9.00% in Q2 2024, down 2.81 percentage points due to increased expense ratios [2]. Financial Summary - Revenue projections for 2024-2026 are 5.476 billion CNY, 6.227 billion CNY, and 7.111 billion CNY, reflecting growth rates of 6.55%, 13.72%, and 14.19% respectively [2]. - The forecasted net profit for the same period is 725 million CNY, 919 million CNY, and 1.113 billion CNY, with year-on-year changes of -57.30%, +26.77%, and +21.20% respectively [2]. - The company expects Meiwai Xian's revenue to grow from 5.322 billion CNY in 2024 to 7.032 billion CNY in 2026, with corresponding net profits of 700 million CNY, 912 million CNY, and 1.107 billion CNY [2].