JONJEE(SH:600872) EBSCN·2025-05-03 14:50Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company experienced significant revenue pressure in Q1 2025, with a year-on-year revenue decline of 25.81% to 1.102 billion yuan and a net profit decline of 24.24% to 181 million yuan [1][4] - The decline in revenue is attributed to the timing of the Spring Festival, high base effects from the previous year, and strategic adjustments focusing on restoring channel confidence [4][6] - The company is undergoing a transformation period with reforms in organizational structure, channel management, pricing control, and product category expansion [6] Summary by Sections Financial Performance - Q1 2025 revenue was 1.102 billion yuan, down 25.81% year-on-year, with the core subsidiary, Meiwai Xian, contributing 1.082 billion yuan, a decrease of 25.94% [4] - The company’s overall gross margin improved to 38.73%, up 1.75 percentage points year-on-year, primarily due to lower raw material costs [5] - The net profit margin for Q1 2025 was 16.44%, an increase of 0.34 percentage points year-on-year [5] Business Strategy - The company plans to enhance channel construction by repairing the pricing system in South China, adjusting KA channel distributors, strengthening new retail and traditional e-commerce, and expanding the catering channel [6] - The recovery of minority equity in Chubang is expected to contribute positively to net profit starting in 2025 [6] Profit Forecast and Valuation - The net profit forecasts for 2025, 2026, and 2027 are adjusted to 897 million yuan, 999 million yuan, and 1.1 billion yuan respectively, reflecting a downward revision of 7.1%, 6.4%, and 7.3% [7] - The estimated EPS for 2025, 2026, and 2027 are 1.14 yuan, 1.28 yuan, and 1.40 yuan, with corresponding P/E ratios of 17, 15, and 14 [7]