JGJC(SZ:000799) Soochow Securities·2025-05-05 14:23Investment 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 [3][14] - The revenue for 2024 is projected to be 1.423 billion, reflecting a year-on-year decline of 49.7%, while the net profit is expected to be 0.1249 billion, down 97.72% [1][8] - The company aims to stabilize revenue and improve profitability through a focus on high-quality sales and product matrix upgrades [14] Revenue and Profit Analysis - In Q1 2025, the company's revenue decreased by 30.3% year-on-year, returning to levels seen in 2019-2020 [3] - The net profit margin for Q1 2025 fell by 5.6 percentage points to 9.2%, primarily due to a decline in interest income and rigid management expenses [3] - The company has implemented cost control measures, resulting in a 5.0% reduction in management expenses year-on-year [3] Product and Market Strategy - The company plans to enhance its product matrix with a "2+2+2" strategy, focusing on two strategic products, two key products, and two foundational products [14] - The company is concentrating on its home market in Hunan, with a structured approach to market management and resource allocation [14] - The number of distributors has decreased from 1,774 to 1,326, a reduction of 25%, to strengthen control and optimize focus [8][14] Financial Forecasts - The forecast for net profit in 2025 is adjusted to 0.7 billion, with projections for 2026 and 2027 at 1.1 billion and 1.5 billion respectively [14] - The current market capitalization corresponds to a P/E ratio of 213 for 2025, 128 for 2026, and 91 for 2027 [14]