JONJEE(SH:600872) Huachuang Securities·2024-10-28 02:16Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 31.35 CNY, compared to the current price of 23.87 CNY [1]. Core Insights - The company reported a revenue of 3.946 billion CNY for the first three quarters of 2024, a slight decrease of 0.17% year-on-year, but achieved a net profit of 576 million CNY, marking a return to profitability. In Q3 alone, revenue was 1.328 billion CNY, up 2.23% year-on-year, with a net profit of 226 million CNY, an increase of 32.90% [1]. - The company is focusing on natural sales growth, with Q3 revenue growth slightly below expectations. The product line showed mixed results, with soy sauce growing by 0.5% year-on-year, chicken essence and powder up by 14.0%, while edible oil saw a decline of 9.2% due to shipping schedules [1]. - The gross margin for Q3 was 38.8%, an increase of 5.0 percentage points year-on-year, driven by lower material costs and improved product mix. The sales expense ratio decreased to 6.3%, down 1.9 percentage points year-on-year, reflecting better cost management [1]. - The company is expected to gradually improve in the second half of the year, with operational adjustments and reforms anticipated to restore a better growth rhythm in the coming year [1]. Financial Summary - Total revenue for 2023 is projected at 5.139 billion CNY, with a year-on-year decline of 3.8%. For 2024, revenue is expected to rise to 5.774 billion CNY, reflecting a growth rate of 12.3% [2]. - The net profit for 2023 is estimated at 1.697 billion CNY, with a significant year-on-year increase of 386.5%. However, a decline of 34.9% is expected in 2024, bringing the net profit down to 1.104 billion CNY [2]. - Earnings per share (EPS) for 2024 is projected at 1.41 CNY, with a P/E ratio of 17 times [2].