JONJEE(SH:600872) CMS·2025-09-04 15:37Investment Rating - The report maintains a "Strong Buy" rating for Zhongju Gaoxin (600872.SH) [2][4] Core Views - The company is under pressure but is expected to improve with new management reforms and increased mergers and acquisitions, leading to gradual recovery in the second half of the year [4][5] - The revenue and net profit for Q2 2025 showed a year-on-year decline of 7.21% and 34.59% respectively, indicating ongoing performance challenges, although the decline in revenue has narrowed [4][5] - The soy sauce business has shown significant improvement in Q2 2025, contributing positively to the overall performance [4][5] Financial Performance Summary - For H1 2025, the company reported revenue of 2.132 billion yuan, down 18.58% year-on-year, and a net profit of 257 million yuan, down 26.56% year-on-year [4][5] - In Q2 2025, the company achieved revenue of 1.030 billion yuan, a decline of 9.11% year-on-year, and a net profit of 76 million yuan, down 31.57% year-on-year [4][5] - The gross margin for Q2 2025 was 39.39%, an increase of 3.22 percentage points year-on-year, driven by cost reductions and an increase in the proportion of soy sauce sales [4][5] Product Performance Summary - In Q2 2025, revenue from soy sauce, chicken essence, cooking oil, and other products were 650 million, 126 million, 58 million, and 132 million yuan respectively, with soy sauce showing a year-on-year increase of 6.39% [4][5] - The company has increased its distributor count to 2,799, up by 127 from Q1 2025, indicating a focus on expanding distribution channels [4][5] Future Outlook - The company plans to accelerate the expansion of new channels and improve management to enhance performance in the second half of 2025 [4][5] - The new management team, led by the newly appointed chairman, is expected to drive reforms and return the company to a growth trajectory [4][5]