JINHUI(603919) 东吴证券·2024-10-27 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a total revenue of 2.328 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 15.31%. The net profit attributable to the parent company was 333 million yuan, up 22.17% year-on-year [2] - The revenue for Q3 2024 was 574 million yuan, with a year-on-year growth of 15.77%. The net profit attributable to the parent company reached 38.07 million yuan, showing a significant increase of 108.84% year-on-year [2] - The company is focusing on product structure optimization and has seen an increase in the proportion of high-priced products, which now account for over 50% of total sales [2] - The gross profit margin decreased by 1.5 percentage points to 61.13% in Q3 2024, primarily due to increased promotional discounts and slight rises in raw material costs [2] - The net profit margin increased by 2.95 percentage points to 6.63% in Q3 2024, driven by a reduction in sales and management expense ratios [2] Summary by Sections Financial Performance - Total revenue for 2022 was 2.012 billion yuan, increasing to 2.548 billion yuan in 2023, and projected to reach 3.017 billion yuan in 2024, reflecting a year-on-year growth of 12.49%, 26.64%, and 18.43% respectively [1] - Net profit attributable to the parent company was 280.24 million yuan in 2022, increasing to 328.86 million yuan in 2023, and expected to be 401.81 million yuan in 2024, with year-on-year growth rates of (13.73)%, 17.35%, and 22.18% respectively [1] - The latest diluted EPS is projected to be 0.79 yuan per share in 2024, with a P/E ratio of 25.65 based on the current price [1] Market Position and Strategy - The company is enhancing its marketing transformation and solidifying its pricing system, particularly in the domestic market, while also expanding its presence in the provincial markets [2] - The company added 13 new distributors in the provincial markets in Q3 2024, indicating a positive trend in market expansion [2] Profitability Metrics - The sales expense ratio and management expense ratio decreased to 24.1% and 16% respectively in Q3 2024, reflecting improved efficiency in marketing expenditure and management [2] - The company expects to maintain a steady growth trajectory, with projected net profits of 401.81 million yuan, 486.88 million yuan, and 598.67 million yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 22%, 21%, and 23% [2]