Jointown(SH:600998) Orient Securities·2025-09-17 01:24Investment Rating - The report maintains a "Buy" rating for the company with a target price of 6.30 CNY based on a 14x PE ratio for 2025 [3][6]. Core Views - The company has shown steady revenue growth, with a 5.1% year-on-year increase in H1 2025, achieving a revenue of 811.1 billion CNY and a net profit of 14.5 billion CNY, which is a 19.7% increase year-on-year [10]. - The company is actively pursuing strategic transformation, focusing on enhancing its operational efficiency and expanding its market presence in new retail and e-commerce channels [10]. - The financial forecasts for 2025-2027 have been adjusted, with expected earnings per share of 0.45, 0.47, and 0.53 CNY respectively, reflecting a downward revision from previous estimates [3][5]. Financial Summary - The company's revenue is projected to grow from 150.14 billion CNY in 2023 to 186.71 billion CNY in 2027, with a compound annual growth rate (CAGR) of approximately 7.1% [5][12]. - Operating profit is expected to decline in 2025 to 3.36 billion CNY, down from 3.64 billion CNY in 2024, before recovering to 3.97 billion CNY in 2027 [5][12]. - The net profit attributable to the parent company is forecasted to decrease to 2.27 billion CNY in 2025, with a subsequent increase to 2.68 billion CNY by 2027 [5][12]. - The gross margin is expected to stabilize around 7.8% from 2025 to 2027, while the net margin remains consistent at 1.4% [5][12].