JGJC(SZ:000799) Soochow Securities·2025-05-05 13:56Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company is undergoing internal adjustments and external nurturing, focusing on strengthening its foundation and core operations [3][15] - The revenue for Q1 2025 has decreased by 30.3% year-on-year, returning to levels seen in 2019-2020, indicating a challenging market environment [3] - The company aims to enhance its product matrix and channel dynamics, with a strategic focus on high-quality sales [15] Financial Performance Summary - For 2023, total revenue is projected at 2,830 million yuan, with a year-on-year decline of 30.14% [1] - The net profit attributable to shareholders for 2023 is estimated at 547.81 million yuan, reflecting a significant decrease of 47.77% year-on-year [1] - The earnings per share (EPS) for 2023 is forecasted at 1.69 yuan, with a drastic drop in subsequent years [1] - The company’s sales net profit margin has decreased by 5.6 percentage points to 9.2% in Q1 2025, primarily due to a decline in interest income [3] - The gross profit margin for Q1 2025 has slightly decreased by 0.4 percentage points, while the sales expense ratio has dropped by 6.2 percentage points [3] Revenue and Profit Forecast - The company anticipates total revenue of 1,423 million yuan for 2024, with a projected decline of 49.70% [1] - The net profit for 2024 is expected to be only 12.49 million yuan, a staggering decrease of 97.72% year-on-year [1] - For 2025, the net profit is forecasted to rebound to 65.55 million yuan, representing a growth of 424.66% [1] Market Data - The closing price of the stock is currently at 42.90 yuan, with a market capitalization of approximately 13,939.45 million yuan [6] - The price-to-earnings (P/E) ratio is projected to be 1,115.76 for 2024, decreasing to 91.44 by 2027 [1][16] Strategic Initiatives - The company plans to implement a "2+2+2" strategic product system to enhance its product offerings and streamline its SKU count by 50% [15] - Focus on regional market development, particularly in Hunan, with a structured management approach to optimize sales channels [15]