JH Group(603518) 浙商证券·2025-01-16 00:23Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a strong performance in its 2024 earnings preview, achieving revenue of 4.4 billion, a year-on-year decrease of 3.3%, while operating profit reached 405 million, up 1.5%, and net profit attributable to shareholders was 307 million, an increase of 3.0% [1] - The fourth quarter showed better-than-expected profit performance, with projected revenue of 1.47 billion, a year-on-year increase of 1.6%, and net profit of 145 million, up 35.7% [1] - The company has successfully completed its equity incentive targets, exceeding the net profit target of 306 million before share payment expenses [1] Summary by Sections Performance Overview - The company is expected to achieve a revenue of 4.4 billion in 2024, with a projected operating profit of 405 million and a net profit of 307 million [1] - The fourth quarter is anticipated to show a revenue of 1.47 billion and an operating profit of 193 million, reflecting a 12.6% increase year-on-year [1] Brand Strategy - TeenieWeenie, the mid-to-high-end casual wear brand, is focusing on offline efficiency improvements and IP licensing business growth, which is expected to drive future profitability [2] - The company has been adjusting its direct store structure, closing low-efficiency stores and converting some to franchise models, resulting in a net reduction of 104 direct stores in the first three quarters of 2024 [2] Store and Product Development - The company is refreshing its store formats to enhance customer traffic, focusing on core cities and shopping districts with new store types such as flagship and concept stores [3] - In 2024, the company launched a high-end line, T.W.R.C, to cater to urban commuting needs, further expanding its customer base [3] IP Licensing Growth - The IP licensing business, established in 2020, has shown significant growth, with a CAGR of 112% from 2021 to 2023, and revenue of 14.07 million in the first half of 2024, up 118% year-on-year [4] Profit Forecast - Revenue projections for 2024, 2025, and 2026 are 4.4 billion, 4.63 billion, and 4.87 billion respectively, with net profits expected to be 307 million, 353 million, and 402 million [4]