JINHUI(SH:603919) Ping An Securities·2025-04-15 09:15Investment Rating - The report maintains a "Recommendation" rating for the company, with a current stock price of 19.59 yuan [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, representing a year-on-year growth 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, an increase of 4.3 percentage points 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 growth 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 profits of 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 3.560 billion yuan in 2026, with year-on-year growth rates of 18.6%, 8.6%, and 8.5% respectively [8][12]. - The net profit is expected to be 388 million yuan in 2024, 409 million yuan in 2025, and 445 million yuan in 2026, with growth rates of 18.0%, 5.3%, and 8.8% respectively [8][12]. - The company's return on equity (ROE) is projected to be 11.7% in 2024, 11.4% in 2025, and 11.5% in 2026, indicating stable profitability [13].