Shanghai Jahwa(SH:600315) Shenwan Hongyuan Securities·2025-10-29 07:11Investment Rating - The report upgrades the investment rating to "Buy" based on the company's strong performance and growth potential [2]. Core Insights - The company reported Q3 2025 revenue of 1.483 billion yuan, a year-on-year increase of 28%, and a net profit attributable to shareholders of 140 million yuan, marking a return to profitability [9]. - The company has shown significant improvement in gross margin, reaching 61.5% in Q3 2025, up 7 percentage points year-on-year, attributed to product mix optimization and lower raw material costs [9]. - The report highlights the successful launch of new products and the revitalization of mature brands, contributing to a robust growth matrix [9]. - The company is focusing on online marketing strategies to enhance brand visibility and sales conversion, leveraging platforms like Douyin and Tmall [9]. - The financial forecast has been revised upwards, with expected net profits of 377 million yuan, 505 million yuan, and 606 million yuan for 2025, 2026, and 2027 respectively [9]. Financial Data and Profit Forecast - Total revenue for 2025 is projected at 6.531 billion yuan, with a year-on-year growth rate of 15% [8]. - The net profit attributable to shareholders is expected to be 377 million yuan in 2025, with a significant increase of 149% compared to the previous year [8]. - The report anticipates a gross margin of 59.2% for 2025, with a gradual increase in subsequent years [8]. - The price-to-earnings ratio (PE) for 2025 is estimated at 44 times, with a potential upside of 46% based on current market valuation [9].