JINHUI(SH:603919) Ping An Securities·2025-04-15 02:14Investment Rating - The report maintains a "Recommendation" rating for the company [1] Core Views - The company has shown steady performance with a product structure upgrade, achieving a revenue of 1.11 billion yuan in Q1 2025, a year-on-year increase of 3.0%, and a net profit of 230 million yuan, up 5.8% year-on-year [5][9] - The company is focusing on upgrading its product structure, with high-end products (priced above 300 yuan) accounting for 22.1% of revenue, reflecting a 4.3 percentage point increase year-on-year [9] - The company is expanding its market presence outside its home province, with revenue from provincial and non-provincial markets reaching 860 million yuan and 240 million yuan respectively, showing increases of 1.0% and 9.5% year-on-year [9] - The gross margin improved to 66.8% in Q1 2025, up 1.4 percentage points year-on-year, indicating enhanced profitability due to product structure upgrades [9] - The report forecasts steady growth in net profit for 2025-2027, estimating 410 million yuan, 450 million yuan, and 480 million yuan respectively [9] Financial Summary - The company is projected to achieve revenues of 3.021 billion yuan in 2024, 3.281 billion yuan in 2025, and 3.852 billion yuan in 2027, with year-on-year growth rates of 18.6%, 8.6%, and 8.2% respectively [8][12] - The net profit is expected to grow from 388 million yuan in 2024 to 482 million yuan in 2027, with corresponding growth rates of 18.0%, 5.3%, and 8.5% [8][12] - The company's return on equity (ROE) is projected to remain stable, with estimates of 11.7% in 2024 and gradually increasing to 11.6% by 2027 [8][12]