Shanghai Jahwa(SH:600315) Orient Securities·2025-05-14 11:51Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 27.26 CNY [3][7]. Core Views - The company is expected to experience a recovery starting in 2025, driven by strategic reforms and a new management team [6]. - The introduction of an equity incentive plan aims to motivate key personnel and align their interests with the company's performance [6]. - The company anticipates a double-digit revenue growth in 2025 following a challenging 2024 [6]. Financial Performance Summary - Revenue for 2023 was 6,598 million CNY, with a projected decline to 5,679 million CNY in 2024, followed by a recovery to 6,272 million CNY in 2025, representing a 10.4% growth [3][10]. - The net profit attributable to the parent company is expected to recover from a loss of 833 million CNY in 2024 to a profit of 321 million CNY in 2025, reflecting a 138.6% increase [3][10]. - Earnings per share (EPS) are projected to be 0.48 CNY in 2025, 0.69 CNY in 2026, and 0.89 CNY in 2027 [3][7]. Product and Channel Performance - In 2024, revenue from personal care, beauty, innovation, and overseas businesses is expected to decline by 3.4%, 29.8%, 19.4%, and 11.4% respectively, indicating pressure on the beauty segment [6]. - Online and offline revenue is projected to decrease by 9.7% and 17% respectively in 2024 [6]. Margin Analysis - The gross margin is expected to decline to 57.6% in 2024, with personal care showing a slight increase while beauty and overseas segments face declines [6]. - The net profit margin is projected to be -14.7% in 2024, reflecting significant challenges [6]. Strategic Initiatives - The company is focusing on online transformation and strategic adjustments in offline channels to adapt to industry changes [6]. - The management aims to enhance online operational capabilities, particularly in interest e-commerce and emerging platforms [6].