JONJEE(SH:600872) Huachuang Securities·2026-02-12 03:35Investment Rating - The report maintains a "Strong Buy" rating for Zhongju Gaoxin (600872) with a target price of 23.1 CNY [2][7]. Core Insights - The company is undergoing a strategic acquisition to enhance its composite seasoning product line and restaurant channel, which is expected to drive long-term growth [7]. - Despite facing short-term pressures in 2025, the company is implementing corrective measures and governance changes to improve operational quality [7]. - The new chairman's leadership is focused on gradual adjustments and long-term strategies, aiming for steady recovery and improvement in business fundamentals [7]. Financial Performance Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 5,519 million, 4,433 million, 4,797 million, and 5,179 million CNY respectively, with a notable decline of 19.7% in 2025E [3][8]. - Net profit attributable to the parent company is forecasted at 893 million, 525 million, 641 million, and 762 million CNY for the same years, reflecting a significant drop of 47.4% in 2025E [3][8]. - Earnings per share (EPS) are expected to be 1.15, 0.67, 0.82, and 0.98 CNY for 2024A, 2025E, 2026E, and 2027E respectively, with a P/E ratio of 28 for 2025E [3][8]. Market Position and Strategy - The company is actively clearing inventory and addressing pricing issues, which is expected to lead to a strong recovery in Q1 2026 due to a low base effect and seasonal factors [7]. - The acquisition of a 55% stake in Weizimei is aimed at expanding the product range and enhancing market presence, particularly in the Sichuan-style seasoning and prepared dishes sector [7]. - The company has demonstrated confidence in its future by repurchasing shares and increasing holdings by major stakeholders, indicating a commitment to long-term growth [7].