JONJEE(SH:600872) Huachuang Securities·2025-04-09 13:59Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 31.35 CNY [2][8]. Core Views - The company achieved a total revenue of 5.52 billion CNY in 2024, representing a year-on-year increase of 7.4%. The net profit attributable to shareholders was 890 million CNY, while the net profit excluding non-recurring items was 671 million CNY, showing a significant year-on-year growth of 28.0% [2][8]. - In Q4 2024, the company recorded a revenue of 1.57 billion CNY, a year-on-year increase of 32.6%, with a net profit of 317 million CNY and a non-recurring net profit of 119 million CNY, reflecting a remarkable year-on-year growth of 93.9% [2][8]. - The company is focused on strategic optimization and gradual reform, aiming to enhance its core capabilities in fine marketing, continuous innovation, and lean operations [2][8]. Financial Performance Summary - The company reported a total revenue of 5,519 million CNY for 2024, with a year-on-year growth rate of 7.4%. The projected revenue for 2025 is 6,151 million CNY, indicating an expected growth rate of 11.4% [8]. - The net profit attributable to shareholders for 2024 was 893 million CNY, with a projected slight increase to 900 million CNY in 2025, reflecting a growth rate of 0.7% [8]. - The earnings per share (EPS) for 2024 was 1.14 CNY, with projections of 1.15 CNY for 2025, 1.32 CNY for 2026, and 1.45 CNY for 2027 [8]. Market Position and Strategy - The company aims to achieve continuous revenue growth and plans to complete at least one industrial acquisition in 2025 to fill gaps in its product categories [2][8]. - The company has successfully reduced inventory levels to a safe range and anticipates improved operational performance in Q2 2025 as the market stabilizes [2][8]. - The report highlights the potential for profit growth through the recovery of minority stakes and ongoing cost advantages, alongside the expected benefits from acquisitions [2][8].