Shanghai Jahwa(600315) 国泰君安·2024-10-30 03:14Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company underwent a strategic adjustment following a management change in Q3, leading to short-term pressure on revenue and profit. The EPS forecasts for 2024-2026 have been revised down to 0.37 (-0.31), 0.75 (-0.14), and 0.99 (-0.07) yuan respectively. A target PE of 28x for 2025 is set, maintaining a target price of 21.32 yuan [3][4] - The company's performance in Q1-Q3 2024 showed revenue, net profit attributable to shareholders, and net profit excluding non-recurring items at 447.7 million, 16.3 million, and 12.0 million yuan respectively, reflecting year-on-year declines of 12%, 59%, and 60%. Q3 2024 alone saw revenue of 115.6 million yuan, a 21% decrease year-on-year, with a shift to a loss in profit due to strategic adjustments and declines in joint venture earnings [3][4] - The gross margin for Q1-Q3 2024 was 59.41%, a slight increase of 0.11 percentage points year-on-year. However, Q3 2024 gross margin dropped to 54.49%, down 3.24 percentage points year-on-year, primarily due to strategic adjustments [3][4] Summary by Sections Management and Strategic Adjustments - The organization and personnel restructuring is nearly complete, with expectations for the new team to bring improvements. The new chairman has initiated structural adjustments and talent acquisition, focusing on core brands and efficiency [3][4] Product Strategy - The company is testing a big product strategy during the Double Eleven shopping festival, with successful sales of key products through major online platforms. This strategy aims to revitalize online sales channels [3][4] Financial Performance - The company’s total revenue for 2024 is projected to be 5.807 billion yuan, down 12% from the previous year, with a net profit of 246 million yuan, a 50.9% decline. The EPS for 2024 is expected to be 0.37 yuan, with a gradual recovery anticipated in subsequent years [3][9]