JINHUI(SH:603919) Huaxin Securities·2024-10-27 23:07Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company has exceeded performance expectations, with steady progress towards its annual targets. The banquet scene is experiencing a phase of recovery, leading to an unexpected increase in profitability [2] - For the first three quarters of 2024, the company achieved revenue of 2.328 billion yuan (up 15% year-on-year) and a net profit attributable to shareholders of 333 million yuan (up 22% year-on-year) [2] - The company is focusing on product structure optimization and expanding its market presence outside its home province through a dual integration strategy [2] Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 574 million yuan (up 16% year-on-year) and a net profit of 38 million yuan (up 109% year-on-year) [2] - The gross margin for Q3 2024 decreased by 2 percentage points to 61.13%, attributed to increased promotional activities and rising procurement costs [2] - As of the end of Q3 2024, the company's contract liabilities stood at 476 million yuan (up 10% year-on-year), indicating strong future growth potential [2] Product and Market Strategy - In Q3 2024, revenue from white liquor priced above 300 yuan reached 160 million yuan (up 42% year-on-year), while revenue from the 100-300 yuan segment was 309 million yuan (up 15% year-on-year) [2] - The company plans to hold ordering meetings for its three-star and four-star products in Q4 to boost terminal sales [2] - Provincial revenue in Q3 2024 was 375 million yuan (up 4% year-on-year), while revenue from outside the province was 171 million yuan (up 38% year-on-year) [2] Earnings Forecast - The company is expected to see a positive trend in product structure upgrades and refined operations in its home market, with EPS forecasts for 2024, 2025, and 2026 at 0.80, 1.01, and 1.24 yuan respectively [3] - The current stock price corresponds to PE ratios of 25, 20, and 16 times for the years 2024, 2025, and 2026 respectively [3]