JONJEE(SH:600872) Changjiang Securities·2025-10-31 12:47Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Views - The company's total revenue for Q1 to Q3 of 2025 was 3.156 billion yuan, a year-on-year decrease of 20.01%. The net profit attributable to shareholders was 380 million yuan, down 34.07% year-on-year [2][5]. - The revenue for Q3 2025 alone was 1.025 billion yuan, reflecting a year-on-year decline of 22.84%, with a net profit of 123 million yuan, down 45.66% year-on-year [2][5]. - The decline in revenue is attributed to channel adjustments and the company's focus on optimizing distributor inventory, which has impacted sales negatively [6][8]. Summary by Sections Revenue Breakdown - Revenue by product for Q1 to Q3 2025: Soy sauce 1.896 billion yuan (down 17.5% year-on-year), chicken essence and powder 393 million yuan (down 22.76%), edible oil 198 million yuan (down 42.67%), and others 465 million yuan (down 4.9%) [6]. - Revenue by region: Eastern region 649 million yuan (down 28.21%), Southern region 1.227 billion yuan (down 17.48%), Central and Western region 643 million yuan (down 14.68%), and Northern region 433 million yuan (down 12.78%) [6]. Profitability Analysis - The net profit margin for Q1 to Q3 2025 decreased by 2.57 percentage points to 12.04%, while the gross margin increased by 1.84 percentage points to 39.21%. The expense ratio rose by 6.33 percentage points to 25.72% [7]. - For Q3 2025, the net profit margin fell by 5.05 percentage points to 12.01%, with a gross margin of 39.53% (up 0.71 percentage points) and an expense ratio of 26.9% (up 10.75 percentage points) [7]. Future Outlook - The company is undergoing a painful period of channel adjustments, with short-term revenue pressure. However, with the new board of directors in place since July 2025, governance is being adjusted, and a turnaround is anticipated [8]. - As inventory is gradually digested and the pricing system is streamlined, along with ongoing efforts in the catering channel, compound seasonings, and overseas markets, growth momentum is expected to gradually release in the medium to long term [8]. - EPS estimates for 2025 and 2026 are approximately 0.70 yuan and 0.91 yuan, respectively, corresponding to PE valuations of 26 and 20 times [8].