KJS(SH:601579) Huaxin Securities·2025-05-08 09:31Investment Rating - The report maintains a "Buy" investment rating for the company [6] Core Views - The company has optimized its product structure, leading to improved gross margins and increased investment in terminal expenses [5] - In Q1 2025, the company reported revenue of 481 million yuan, a year-on-year increase of 10%, and a net profit attributable to shareholders of 94 million yuan, up 2% year-on-year [4] - The company is focusing on high-end brand recognition through targeted marketing strategies and product innovation to attract younger consumers [5] Summary by Sections Financial Performance - Q1 2025 gross margin increased by 7 percentage points to 60.71%, driven by accelerated revenue growth in mid-to-high-end yellow wine [5] - Revenue from mid-to-high-end yellow wine reached 336 million yuan, a 12% increase, while ordinary yellow wine revenue was 105 million yuan, up 1% [5] - The company’s net profit margin decreased by 2 percentage points to 19.46% due to increased promotional expenses [5] Market Strategy - The company is enhancing its market presence in Zhejiang, with Q1 2025 revenue of 286 million yuan, a 17% increase, by strengthening its distribution network [5] - New product development includes lemon-flavored and canned yellow wine, aimed at cultivating consumer habits [5] Earnings Forecast - The company’s EPS for 2025-2027 is adjusted to 0.50, 0.60, and 0.71 yuan respectively, with corresponding PE ratios of 29, 24, and 21 times [6] - Revenue projections for 2025-2027 are 1.884 billion, 2.141 billion, and 2.387 billion yuan, with growth rates of 15.5%, 13.6%, and 11.5% respectively [9]