JINHUI(SH:603919) Huaan Securities·2025-03-24 06:32Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's product structure is continuously upgrading, leading the consumption upgrade trend within the province. The company is gradually exploring an expansion model through sample markets outside the province, steadily developing the surrounding Gansu northern market [9] - Revenue for Q4 2024 reached 693 million yuan, representing a year-on-year increase of 31.1%. The total revenue for 2024 was 3.021 billion yuan, up 18.6% year-on-year [10] - The company has maintained a steady investment in expenses, with a net profit margin of 7.5% for Q4 2024, down 2.7 percentage points year-on-year [10] Revenue and Profitability - For Q4 2024, the company's revenue from products priced above 300 yuan, between 100-300 yuan, and below 100 yuan increased by 29.3%, 17.2%, and 23.8% year-on-year, respectively. The low-end segment performed well due to strong demand during the Spring Festival [10] - The gross profit margin for Q4 2024 was 50.13%, down 8.3 percentage points year-on-year, primarily due to increased promotional expenses for low-end products [10] - The company expects to achieve total revenues of 3.288 billion, 3.608 billion, and 3.982 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 8.8%, 9.8%, and 10.4% [11] Market Performance - The company's sales cash collection for Q4 2024 increased by 27.4% year-on-year, indicating strong channel confidence [10] - The company has seen a net increase of 16 and 121 distributors in the province and outside the province, respectively, indicating a focus on refining the domestic market while expanding into Eastern China and surrounding Gansu northern markets [10]