JINHUI(SH:603919) Southwest Securities·2025-04-15 10:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of —— yuan over the next six months [1][11]. Core Insights - The company is on a clear path of structural optimization, demonstrating strong long-term growth potential [1]. - The first quarter of 2025 saw the company achieve revenue of 1.11 billion yuan, a year-on-year increase of 3.0%, and a net profit attributable to the parent company of 230 million yuan, up 5.8% year-on-year, aligning with market expectations [7]. - The company is accelerating its national layout, with significant growth in high-end products priced above 300 yuan, which saw a revenue increase of 28.1% year-on-year [7]. - The gross profit margin improved by 1.4 percentage points to 66.8% in Q1 2025, driven by product structure upgrades [7]. - The company aims for a revenue target of 3.28 billion yuan and a net profit of 408 million yuan for 2025, which is expected to be achieved smoothly [7]. Financial Summary - Revenue projections for 2024A, 2025E, 2026E, and 2027E are 3.021 billion yuan, 3.276 billion yuan, 3.602 billion yuan, and 4.004 billion yuan respectively, with growth rates of 18.59%, 8.42%, 9.97%, and 11.16% [2][8]. - Net profit attributable to the parent company is forecasted to be 388 million yuan in 2024A, 411 million yuan in 2025E, 458 million yuan in 2026E, and 535 million yuan in 2027E, with growth rates of 18.03%, 5.92%, 11.29%, and 16.94% respectively [2][8]. - The earnings per share (EPS) are projected to be 0.77 yuan for 2024A, 0.81 yuan for 2025E, 0.90 yuan for 2026E, and 1.05 yuan for 2027E [2][8]. - The return on equity (ROE) is expected to increase from 11.48% in 2024A to 12.64% in 2027E [2][8].