JGJC(SZ:000799) Haitong Securities International·2025-05-25 13:14Investment Rating - The report upgrades the investment rating to OUTPERFORM [1][2]. Core Views - Jiugui Liquor is the only brand of Fuyu aromatic Baijiu and the leading brand in Hunan, with a complete product matrix including ultra-high-end, sub-high-end, and popular products [3][9]. - The company is currently in a performance adjustment period, with significant revenue and profit declines in 2023 and 2024, but shows signs of recovery in Q4 2024 [4][11]. - The company is focusing on optimizing its product matrix in response to intensified competition in the sub-high-end Baijiu market [10][12]. Financial Summary - The company's revenue is projected to be Rmb 1.27 billion in 2025, with a net profit of Rmb 69 million, leading to an EPS of Rmb 0.21 [5][13]. - The gross profit margin is expected to improve from 78.3% in 2025 to 88.3% by 2027, indicating a recovery in profitability [8]. - The company’s market capitalization is Rmb 14 billion (approximately US$1.94 billion) with a target price set at Rmb 49.00 [2][5].