Shanghai Jahwa(600315)2024-10-29 07:15Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [3][5]. Core Views - The company's Q3 2024 performance was below expectations, with a revenue of 4.477 billion yuan, a decrease of 12.07% year-on-year, and a net profit of 163 million yuan, down 58.72% year-on-year [3][4]. - The company is undergoing a strategic transformation, focusing on high-margin and high-growth product categories, with an emphasis on brand-centric operations [5][6]. - The report anticipates a marginal improvement in performance as the company prepares for the upcoming Double Eleven shopping festival [5]. Financial Performance Summary - For Q1-Q3 2024, the company reported a revenue of 4.477 billion yuan, a decline of 12.07% year-on-year, and a net profit of 163 million yuan, down 58.72% year-on-year [3][4]. - The gross margin for Q1-Q3 2024 was 59.41%, a slight decrease of 0.11 percentage points year-on-year, while the net profit margin was 3.63%, down 4.11 percentage points year-on-year [4][5]. - The company’s revenue breakdown by business segment for Q1-Q3 2024 shows that the personal care division accounted for 47.4% of total revenue, while the beauty division contributed 14.8% [5]. Future Earnings Forecast - The report projects the company's net profit for 2024 to be 531 million yuan, with expected growth rates of 6.2% in 2024, 21.1% in 2025, and 9.5% in 2026 [6][12]. - The estimated price-to-earnings (PE) ratios for the next three years are 22 for 2024, 18 for 2025, and 17 for 2026 [5][6].