JINHUI(SH:603919) Minsheng Securities·2024-10-26 05:39Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company reported a revenue of 2.33 billion yuan for the first three quarters of 2023, representing a year-on-year increase of 15.3%, and a net profit attributable to shareholders of 330 million yuan, up 22.2% year-on-year [1]. - The product structure continues to optimize, with significant growth in high-end products and steady expansion in both domestic and western markets [1]. - The company is focusing on enhancing its market presence in Gansu and gradually developing the East China and Northern markets as a second growth curve [1]. Financial Performance Summary - For the first three quarters of 2023, the company achieved a gross margin of 64.1%, an increase of 0.7 percentage points year-on-year, and a net profit margin of 14.3%, up 0.8 percentage points [1]. - The company expects revenues of 2.97 billion yuan, 3.46 billion yuan, and 4.07 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 401 million yuan, 477 million yuan, and 564 million yuan for the same years [2][4]. - The company’s cash flow from operating activities for 2023 is projected to be 450 million yuan, increasing to 762 million yuan by 2026 [5]. Product and Market Strategy - The company’s product revenue breakdown for the first three quarters of 2023 shows that products priced above 300 yuan generated 470 million yuan, a year-on-year increase of 43.8% [1]. - The company is implementing a market strategy of "national layout, deep cultivation in the northwest, and key breakthroughs," achieving a revenue of 1.72 billion yuan in Gansu, a 13.9% increase year-on-year [1]. - The company has increased its number of distributors to 1,028, with a focus on optimizing distributor selection and expanding its presence in provincial and out-of-province markets [1].