JONJEE(600872) 国信证券·2024-08-12 06:35Investment Rating - The investment rating for the company is "Outperform the Market" [4][9]. Core Views - The company experienced a 12% year-on-year decline in revenue for the second quarter of 2024, with ongoing reform measures in place [1]. - The demand for condiments is weak, leading to pressure on the revenue from the company's flagship product, Meiwei Xian [5]. - The company is expected to see gradual improvement in performance in the second half of the year due to ongoing reforms and cost management [1][5]. Financial Performance Summary - For the first half of 2024, the company achieved total revenue of 2.618 billion yuan, a decrease of 1.35% year-on-year, and a net profit attributable to shareholders of 350 million yuan, with a non-recurring net profit of 339 million yuan, up 14.53% year-on-year [1][5]. - In the second quarter of 2024, total revenue was 1.134 billion yuan, down 11.96% year-on-year, with a net profit of 111 million yuan and a non-recurring net profit of 103 million yuan, down 32.37% year-on-year [1][5]. - The company added 104 distributors, bringing the total to 2,285, with a target of adding 300-500 distributors for the year [5]. Margin and Cost Analysis - The gross margin improved to 36.2% in the second quarter of 2024, an increase of 3.7 percentage points year-on-year, attributed to lower raw material costs and enhanced management efficiency [1][5]. - The company’s expense ratios for sales, management, R&D, and finance increased to 14.8%, 7.8%, 3.7%, respectively, due to increased channel investments during the reform process [1][5]. Future Outlook - The company is in the first year of a three-year strategic plan, focusing on organizational reforms and enhancing employee incentives [1][5]. - The performance in the second half of 2024 is expected to improve gradually, supported by reduced cost pressures and better inventory management among distributors [1][5]. Earnings Forecast - The company’s revenue forecasts for 2024-2025 are adjusted to 5.544 billion yuan and 6.085 billion yuan, respectively, with a projected revenue growth of 7.9% and 9.8% year-on-year [7]. - The net profit forecasts for 2024-2025 are adjusted to 714 million yuan and 778 million yuan, with a significant decline of 57.9% in 2024, followed by a recovery of 9.1% in 2025 [7]. - The expected EPS for 2024-2026 is 0.91 yuan, 0.99 yuan, and 1.21 yuan, with corresponding PE ratios of 21.1, 19.3, and 15.9 [7].