JINHUI(603919) Guoxin Securities·2025-04-15 11:45Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][11] Core Views - The company reported a steady performance in Q1 2025, with total revenue of 1.108 billion yuan, a year-on-year increase of 3.0%, and a net profit of 234 million yuan, up 5.8% year-on-year. The revenue growth was slightly lower due to disruptions in the sales rhythm of products priced below 100 yuan and the pre-positioning of inventory for the Spring Festival in Q4 2024 [1][4] - The product structure continues to upgrade, with revenue from products priced above 300 yuan increasing by 28.1%, while products priced below 100 yuan saw a decline of 31.7%. The proportion of revenue from products priced above 100 yuan reached 79.8% [2][4] - The company is expected to actively capture sales opportunities during holidays and business events, maintaining previous profit forecasts for 2025-2027 [4][5] Summary by Sections Financial Performance - In Q1 2025, the gross profit margin increased by 1.41 percentage points, driven by product structure improvement and reduced promotional efforts post-Spring Festival. The sales expense ratio decreased by 1.18 percentage points, leading to a comprehensive gross profit margin increase of 2.50 percentage points [3][4] - The company achieved a total revenue of 3.269 billion yuan in 2025, with a year-on-year growth of 8.2%, and a net profit of 409 million yuan, reflecting a growth of 5.3% [5][4] Market and Product Insights - The company’s revenue from the domestic market was 857 million yuan, up 1.1% year-on-year, while revenue from the provincial market increased by 9.5% to 238 million yuan. The company is focusing on integrated marketing strategies in the northwest region, particularly in Shaanxi [2][4] - The company plans to maintain a proactive investment strategy to enhance market share while focusing on refining and optimizing expense allocations [3][4] Valuation Metrics - The current stock price corresponds to a P/E ratio of 24.3 for 2025 and 21.4 for 2026, indicating a reasonable valuation compared to industry peers [4][5][11] - The projected revenue for 2025-2027 is 3.269 billion yuan, 3.616 billion yuan, and 4.049 billion yuan, respectively, with net profits expected to reach 409 million yuan, 464 million yuan, and 551 million yuan [5][4]