JINHUI(SH:603919) Haitong Securities International·2025-10-26 13:38Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 22.00, while the current price is RMB 19.80 [1][5]. Core Insights - The company reported total revenue of RMB 2.31 billion for Q1-Q3 2025, a decrease of 1.0% year-on-year, and a net profit attributable to shareholders of RMB 320 million, down 2.8% year-on-year [2][10]. - In Q3 2025, the company achieved total revenue of RMB 550 million, a decline of 4.9% year-on-year, with a net profit of RMB 30 million, down 33.0% year-on-year [2][10]. - The company is experiencing pressure in the industry but is maintaining steady progress, particularly in its home province and key regions [5][13]. Revenue and Profit Analysis - Revenue projections for 2025-2027 are estimated at RMB 3.0 billion, RMB 3.2 billion, and RMB 3.5 billion, respectively, with net profits of RMB 376 million, RMB 403 million, and RMB 444 million [5][14]. - The gross margin in Q3 2025 increased by 0.3 percentage points year-on-year, primarily due to a higher proportion of low-end products [12]. Product and Channel Performance - The revenue from products priced above RMB 300 decreased by 1.6% year-on-year, while products priced below RMB 100 saw an increase of 18.4% [3][11]. - Distributor revenue declined by 7.7% year-on-year, accounting for 93.3% of total revenue, indicating pressure on this core channel [3][11]. Market Position and Strategy - The company holds a 70.2% market share in its home province, with strong performance in key Northwest regions like Shaanxi and Xinjiang [13]. - The strategic focus on core areas in East China and Northern markets has begun to yield initial success in cultivating new markets [13].