JONJEE(SH:600872) Soochow Securities·2025-04-10 09:03Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 annual report shows that total revenue reached 55.19 billion yuan, a year-on-year increase of 7.39%, while net profit attributable to shareholders was 893.07 million yuan, a decrease of 47% [8] - The company is undergoing internal reforms, which are expected to gradually release reform dividends and improve performance [8] - Despite industry demand being weak, the company is still in a reform period, leading to a downward adjustment of revenue and net profit forecasts for 2025 and 2026 [8] Financial Performance Summary - Total revenue for 2023 was 51.39 billion yuan, with a projected increase to 55.19 billion yuan in 2024, and further growth expected in subsequent years [1] - The net profit attributable to shareholders for 2023 was 1.70 billion yuan, with a significant drop to 893.07 million yuan in 2024, but a recovery is anticipated in the following years [1] - The latest diluted EPS is projected to be 1.14 yuan in 2024, with an expected increase to 1.48 yuan by 2027 [1] Revenue and Profit Forecasts - Revenue forecasts for 2025 and 2026 have been adjusted to 58 billion yuan and 66 billion yuan respectively, with a new forecast for 2027 set at 75 billion yuan [8] - The net profit forecasts for 2025 and 2026 are now 8.9 billion yuan and 10.1 billion yuan, with a new forecast for 2027 at 11.6 billion yuan [8] Margin and Cost Analysis - The gross margin for 2024 is expected to improve to 39.8%, with a significant increase in Q4 to 45.8% [8] - The company has seen a reduction in the cost of raw materials, contributing to improved profitability [8] Market Position and Strategy - The company is expanding its distributor network, which increased by 159 to a total of 2,554 by the end of 2024 [8] - The introduction of price control measures and the recovery of minority interests are part of the company's strategy to enhance profitability [8]