JONJEE(SH:600872) Huaan Securities·2025-05-05 09:18Investment Rating - The investment rating for the company is maintained at "Buy" [6][9]. Core Views - The company's revenue has been impacted by the timing of the Spring Festival and channel adjustments [4]. - The gross profit margin increased by 1.8 percentage points year-on-year to 38.7%, primarily due to a decline in raw material costs and optimized supply chain management [5]. - The net profit margin for the company increased by 0.3 percentage points year-on-year to 16.4% [5]. - The company is expected to experience a low start followed by improvement in operations in the second half of 2025, driven by inventory destocking and a focus on traditional channel penetration and e-commerce expansion [6]. Financial Performance Summary - In Q1, the company reported revenue of 1.102 billion yuan, a decrease of 25.8% year-on-year, and a net profit of 181 million yuan, down 24.2% year-on-year [6][9]. - The main product, "Meiwei Xian," generated revenue of 1.08 billion yuan in Q1, a decline of 25.9% year-on-year, attributed to the Spring Festival timing and inventory destocking [6]. - Revenue from soy sauce, chicken essence, and cooking oil decreased by 31.6%, 28.6%, and 50.0% year-on-year, respectively [6]. - The company anticipates total revenue of 5.8 billion yuan in 2025, with a year-on-year growth of 5.1% [11]. Profitability Forecast - The company is projected to achieve net profits of 900 million yuan, 990 million yuan, and 1.11 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 1.0%, 9.1%, and 12.3% [6][11]. - The current price-to-earnings ratio (P/E) is expected to be 17, 15, and 14 times for the years 2025, 2026, and 2027, respectively [6].