Joyoung(SZ:002242) Huachuang Securities·2025-09-12 09:43Investment Rating - The report maintains a "Recommendation" rating for Jiuyang Co., Ltd. with a target price of 11.3 yuan [2][8]. Core Insights - Jiuyang's domestic market operations remain stable, while overseas business faces pressure. The company reported a revenue of 3.99 billion yuan for the first half of 2025, a year-on-year decrease of 9.1%, and a net profit attributable to shareholders of 123 million yuan, down 30.0% year-on-year [2][8]. - The domestic business showed resilience with a revenue of 3.56 billion yuan in H1 2025, reflecting a slight increase of 0.16% year-on-year, while overseas revenue dropped significantly by 48.7% to 430 million yuan, attributed to tariff impacts and fluctuations in overseas demand [8]. - The overall gross margin decreased to 27.2% in H1 2025, down 0.9 percentage points year-on-year, with domestic gross margin declining to 29.8% due to intensified competition [8]. - Non-operating losses impacted net profit, with a net profit margin of 3.1% in H1 2025, down 0.9 percentage points year-on-year. The company has adopted a cautious approach to expenses, with a total expense ratio of 23.9% [8]. - Jiuyang is positioned as a leader in the domestic small appliance sector, with long-term growth potential. The projected net profits for 2025, 2026, and 2027 are 240 million, 330 million, and 390 million yuan, respectively, with corresponding P/E ratios of 30, 22, and 19 [8]. Financial Summary - For 2025, the total revenue is projected at 8.43 billion yuan, with a year-on-year decline of 4.7%. The net profit is expected to rebound significantly in 2026 with a growth rate of 98.2% [4][9]. - The current share price is 9.69 yuan, with a historical high of 11.98 yuan and a low of 8.78 yuan over the past 12 months [5][9]. - The company has a total market capitalization of 7.394 billion yuan and a debt-to-asset ratio of 52.43% [5].