JINHUI(603919) Orient Securities·2024-10-28 03:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 22.31 CNY, based on a projected P/E ratio of 23 times for 2025 [4][7]. Core Insights - The company reported a revenue of 2.33 billion CNY for the first three quarters of 2024, representing a year-over-year increase of 15.3%, and a net profit of 330 million CNY, up 22.2% year-over-year. In Q3 alone, revenue was 570 million CNY, with a remarkable net profit growth of 108.8% year-over-year [1][2]. - The product mix continues to upgrade, with significant growth in high-end products. For the first three quarters of 2024, products priced above 300 CNY generated 470 million CNY in revenue, a 43.8% increase year-over-year [1]. - The company is deepening its market presence in the Northwest region, achieving domestic revenue of 1.72 billion CNY and external revenue of 550 million CNY in the first three quarters of 2024, with external revenue growing by 15.7% year-over-year [1]. - The net profit margin improved to 6.4% in Q3 2024, an increase of 2.9 percentage points year-over-year, despite a slight decline in gross margin to 61.1% [1]. Financial Summary - The company’s projected revenue for 2024-2026 is adjusted to 3.018 billion CNY, 3.555 billion CNY, and 4.153 billion CNY respectively, with corresponding net profits of 402 million CNY, 493 million CNY, and 599 million CNY [3][7]. - The earnings per share (EPS) forecast for 2024-2026 is revised to 0.79 CNY, 0.97 CNY, and 1.18 CNY respectively [2][3]. - The gross margin is expected to improve gradually from 62.4% in 2023 to 64.3% in 2026, while the net margin is projected to increase from 12.9% to 14.4% over the same period [3][10].