JH Group(603518) 太平洋·2025-02-12 00:52Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [10][11]. Core Insights - The company reported a revenue of 4.395 billion yuan for 2024, a year-on-year decrease of 3.3%, while the net profit attributable to shareholders was 307 million yuan, reflecting a year-on-year increase of 3.02% [4]. - The fourth quarter of 2024 showed a significant upward trend in performance, with revenue increasing by 1.6% year-on-year to 1.47 billion yuan and net profit attributable to shareholders rising by 35.7% to 145 million yuan [5]. - The company is expected to achieve its equity incentive target of 306 million yuan, excluding share-based payment expenses [4]. Summary by Sections Financial Performance - The company’s total revenue for 2024 is projected at 4.395 billion yuan, with a revenue growth rate of -3.3% [7]. - The net profit for 2024 is estimated at 307 million yuan, with a net profit growth rate of 3.0% [7]. - The diluted earnings per share for 2024 is expected to be 0.88 yuan, with a price-to-earnings (PE) ratio of 11 [7]. Business Strategy - The company has successfully implemented channel adjustments, including closing inefficient direct-operated stores and converting some to franchise models, resulting in a net reduction of 104 direct-operated stores and a net increase of 66 franchise stores [6]. - The company’s IP assets, particularly the TeenieWeenie brand, have shown promising growth, with IP licensing revenue increasing by 118% year-on-year to 14.07 million yuan in the first half of 2024 [6]. - The launch of a high-end product line, T.W.R.C, aims to cater to urban commuting needs and expand the customer base [6]. Future Outlook - The report anticipates a recovery in performance driven by consumer promotion policies and improved foot traffic in physical stores [7]. - The company is expected to achieve net profits of 359 million yuan and 425 million yuan in 2025 and 2026, respectively, with corresponding PE ratios of 9 and 8 [7].