Shanghai Jahwa(SH:600315) CMS·2025-10-28 05:13Investment Rating - The report maintains a "Strong Buy" rating for the company [2][7]. Core Insights - The company continues to demonstrate the effects of its reforms, with rapid growth driven by core brands. The beauty segment is experiencing high growth, while personal care maintains steady growth. The improvement in product channel structure and cost reduction efforts have enhanced profitability [1][7]. - The company reported a revenue of 1.483 billion yuan in Q3 2025, a year-on-year increase of 28.29%. The net profit attributable to shareholders was 140 million yuan, with a non-recurring net profit of 10 million yuan, both turning profitable compared to the same period last year [7]. - The online channel and core brand growth momentum remain strong, with the beauty segment showing a 272.3% year-on-year increase in Q3 2025. The personal care segment also saw a 13.8% increase, with the online channel accounting for 50% of total sales [7]. - The gross margin improved by 7.0 percentage points to 61.5% in Q3 2025, attributed to a higher proportion of high-margin new products and a decrease in raw material costs [7]. - Operating cash flow significantly improved, reaching a net amount of 734 million yuan in the first three quarters, a year-on-year increase of 172.77% [7]. - The company expects net profits attributable to shareholders to be 428 million yuan, 482 million yuan, and 544 million yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 13% for both years [7]. Financial Data Summary - Total revenue for 2025 is estimated at 6.5 billion yuan, with a projected growth of 14% in 2026 and 15% in 2027 [12]. - The company’s total assets are projected to be 9.953 billion yuan in 2025, with a total liability of 2.853 billion yuan [11]. - The return on equity (ROE) is expected to improve to 6.2% in 2025, with a gradual increase to 7.1% by 2027 [12].