JONJEE(SH:600872) EBSCN·2025-08-31 09:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown operational improvement in Q2 2025, with governance structure optimization expected to gradually release reform benefits [1][8] - The company reported a revenue of 2.13 billion yuan in H1 2025, a year-on-year decrease of 18.58%, and a net profit of 257 million yuan, down 26.56% [4][9] - The company is focusing on new retail as a strategic priority, with online business core categories growing over 60% [5][8] Summary by Sections Revenue Performance - In H1 2025, the revenue from soy sauce, chicken essence, cooking oil, and other products decreased by 16.68%, 21.98%, 49.39%, and 3.23% respectively, mainly due to intensified industry competition and inventory digestion [5] - Q2 2025 saw a revenue recovery in soy sauce (+6.39%) and other categories, with a narrowing decline compared to Q1 [5][6] Cost and Profitability - The gross margin for H1 2025 was 39.05%, up 2.42 percentage points year-on-year, attributed to lower raw material costs and lean management practices [7] - The net profit margin for H1 2025 was 12.05%, down 1.31 percentage points year-on-year [7] Governance and Strategy - The company completed a board restructuring in July 2025, emphasizing a "small steps, quick runs" incentive mechanism and a long-term operational philosophy [8] - The company is actively adjusting its operational pace and strategically reducing inventory, which may lead to short-term revenue declines but lays the groundwork for long-term health [8] Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been revised downwards to 692 million, 796 million, and 916 million yuan respectively, reflecting a decrease of 22.9%, 20.3%, and 16.7% from previous estimates [9] - The current stock price corresponds to a P/E ratio of 22, 19, and 16 for 2025-2027 [9]