JINHUI(603919) 天风证券·2025-03-31 14:44Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5] Core Views - The company's revenue and net profit for 2024 are projected to be CNY 3.021 billion and CNY 388 million respectively, representing year-on-year growth of 18.59% and 18.03% [1] - The company is experiencing strong performance in the segment of products priced above CNY 300, with a revenue increase of 29.27% in this category [1] - The domestic market remains the core focus, with revenue from the domestic market growing by 24.50% year-on-year, while growth in the external market has slowed to 10.43% [2] - The company is optimizing its cost structure, resulting in a smaller decline in net profit margin compared to gross margin [3] - The company is expected to gradually increase its market share in Gansu province, with future profit releases anticipated as previous investments mature [3] Financial Performance - For 2024, the company expects revenue of CNY 3.021 billion, with a growth rate of 18.59% [4] - The gross margin for Q4 2024 is projected to be 50.13%, down 8.29 percentage points year-on-year, while the net margin is expected to be 7.46%, down 2.70 percentage points [3] - The company’s net profit for 2025 and 2026 is forecasted to be CNY 409.87 million and CNY 452.85 million respectively, with growth rates of 5.60% and 10.49% [4] Market and Sales Channels - In Q4 2024, the company’s revenue from distribution, direct sales (including group purchases), and online sales were CNY 5.93 billion, CNY 0.14 billion, and CNY 0.26 billion respectively [2] - The number of distributors increased by 137 to a total of 1,001, with significant growth in both domestic and external markets [2] Profitability and Valuation - The company’s earnings per share (EPS) for 2024 is projected to be CNY 0.77, with a price-to-earnings (P/E) ratio of 24.71 [4] - The company’s return on equity (ROE) is expected to improve to 11.68% by 2024 [4]