Joyoung(SZ:002242) Huachuang Securities·2025-10-30 13:58Investment Rating - The report maintains a "Recommended" rating for Jiuyang Co., Ltd. with a target price of 10.7 yuan [2][8]. Core Insights - Jiuyang Co., Ltd. reported a revenue of 1.6 billion yuan in Q3 2025, reflecting a year-on-year decline of 11.0%. However, the company achieved a net profit attributable to shareholders of 855,000 yuan, marking a turnaround from losses [2][8]. - The decline in revenue is primarily attributed to weak performance in overseas sales, particularly in the OEM business with SharkNinja, which saw a significant drop in transaction amounts [2][8]. - The overall gross margin improved to 26.2%, up by 6.1 percentage points year-on-year, due to a decrease in the proportion of lower-margin overseas sales [2][8]. - The company has maintained stable expense investments, with a total expense ratio of 26.3%, reflecting a slight increase of 0.2 percentage points year-on-year [2][8]. - Jiuyang is positioned as a leader in the domestic small home appliance sector, with long-term growth potential despite short-term challenges from reduced orders from major overseas clients [2][8]. Financial Summary - For the fiscal years 2024A to 2027E, the projected total revenue is as follows: 8.849 billion yuan (2024A), 8.179 billion yuan (2025E), 8.430 billion yuan (2026E), and 8.849 billion yuan (2027E) [4][9]. - The net profit attributable to shareholders is forecasted to be 122 million yuan (2024A), 149 million yuan (2025E), 259 million yuan (2026E), and 287 million yuan (2027E), with corresponding growth rates of -68.6%, 21.5%, 74.5%, and 10.6% [4][9]. - The earnings per share (EPS) is expected to increase from 0.16 yuan in 2024A to 0.38 yuan in 2027E [4][9]. - The price-to-earnings (P/E) ratio is projected to decrease from 60 times in 2024A to 25 times in 2027E, indicating a potential improvement in valuation [4][9].