JONJEE(SH:600872) KAIYUAN SECURITIES·2025-04-30 14:38Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing short-term pressure on revenue and profit due to ongoing reforms, with expectations for improvement as the effects of these reforms are realized [4][5] - The first quarter of 2025 saw a significant decline in revenue and net profit, primarily attributed to a downturn in the seasoning business [4][5] - The company is focused on both organic growth and strategic acquisitions to support long-term development [7] Revenue Performance - In Q1 2025, the company's revenue and net profit were 1.1 billion and 180 million yuan, respectively, reflecting a year-on-year decline of 25.8% and 24.2% [4] - The decline in revenue was influenced by several factors, including early inventory stocking for the Spring Festival and adjustments in supply chain management [5] - Revenue from key products such as soy sauce, chicken essence, and cooking oil saw year-on-year declines of 31.6%, 28.6%, and 50.0%, respectively [5] Profitability Analysis - The company's net profit margin decreased by 1.17 percentage points to 16.5% in Q1 2025, while the gross margin improved by 1.75 percentage points due to lower raw material costs [6] - The company managed to reduce absolute values of sales, management, and R&D expenses, primarily through decreased promotional costs and energy consumption [6] Financial Forecasts - The company has adjusted its net profit forecasts for 2025-2027 to 920 million, 990 million, and 1.12 billion yuan, respectively, down from previous estimates [4] - The projected P/E ratios for 2025, 2026, and 2027 are 16.4, 15.3, and 13.5 times, respectively [4][9] Strategic Initiatives - The company is actively pursuing brand enhancement through celebrity endorsements and is focusing on acquisition opportunities to fill product gaps [7]