Shanghai Jahwa(600315) 华泰证券·2025-04-25 12:21Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 27.76 [8][9]. Core Views - The company reported a revenue of RMB 5.679 billion for 2024, a year-on-year decrease of 13.93%, and a net profit attributable to shareholders of RMB -833 million, indicating a transition from profit to loss [1]. - In Q1 2025, the company achieved a revenue of RMB 1.704 billion, down 10.59% year-on-year, with a net profit of RMB 217 million, down 15.25% year-on-year. However, there are signs of improvement in actual shipments and terminal sales [1][2]. - The company has initiated an employee stock ownership plan, which is expected to enhance internal motivation and align employee interests with company performance [3]. - The company’s multi-brand online performance showed significant growth in Q1 2025, particularly on platforms like Douyin, with several brands exceeding sales targets [4]. Summary by Sections Financial Performance - The company’s revenue and profit forecasts for 2025 to 2027 are as follows: - 2025: Net profit of RMB 334 million, a year-on-year increase of 140.11% - 2026: Net profit of RMB 488 million, a year-on-year increase of 46.15% - 2027: Net profit of RMB 537 million, a year-on-year increase of 10.06% - Corresponding EPS for these years are projected at RMB 0.50, RMB 0.73, and RMB 0.80 respectively [5][7]. Segment Performance - The beauty segment experienced a revenue decline of 29.81% year-on-year in 2024, while personal care revenue decreased by 3.42% year-on-year. Online revenue for 2024 was RMB 2.539 billion, down 9.66% year-on-year, while offline revenue was RMB 3.136 billion, down 13.85% year-on-year [2]. Employee Incentives - The employee stock ownership plan involves up to 45 participants, representing 0.72% of the total share capital, with a total investment not exceeding RMB 77.51 million. The plan includes performance targets for the years 2025 to 2027 [3]. Market Position and Valuation - The company is currently valued at a price-to-sales (PS) ratio of 3 times for 2025, reflecting its ongoing transformation phase. The target price has been adjusted from RMB 24.98 to RMB 27.76 based on improved sales performance in Q1 [5][8].