Shanghai Jahwa(SH:600315) China Post Securities·2025-05-08 07:37Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [8][14]. Core Views - The company faced significant challenges in 2024, with a reported revenue of 5.679 billion yuan, a year-on-year decrease of 13.9%, and a net profit attributable to shareholders of -833 million yuan, a decline of 266.6% [3][6]. - In Q1 2025, the company showed signs of stabilization with a revenue of 1.704 billion yuan, down 10.6% year-on-year, and a net profit of 217 million yuan, down 15.3% year-on-year [3][4]. - The report highlights a strategic shift in the company's operations, focusing on improving product lines and enhancing online sales channels while reducing inventory in offline channels [5][6]. Company Overview - The latest closing price of the company's stock is 24.10 yuan, with a total market capitalization of 16.2 billion yuan [2]. - The company has a total share capital of 672 million shares, all of which are circulating [2]. Financial Performance - In 2024, the personal care segment generated 2.38 billion yuan in revenue, a decrease of 3.42% year-on-year, while the beauty segment saw a significant drop of 29.81% to 1.05 billion yuan [4]. - The company is undergoing adjustments in its organizational structure, brand strategy, product innovation, and channel operations, with expectations for continued improvement in 2025 [6][10]. Profit Forecast - The forecast for net profit attributable to shareholders for 2025 is 310 million yuan, with expected growth rates of 137.4% in 2026 and 23.6% in 2027 [10][11]. - The projected earnings per share (EPS) for 2025 is 0.46 yuan, improving to 0.57 yuan in 2026 and 0.71 yuan in 2027 [10][11].