JINHUI(SH:603919) GF SECURITIES·2026-03-22 09:56Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 18.11 CNY and a fair value of 18.97 CNY [3]. Core Insights - The company has demonstrated resilience in its operations, with a significant upgrade in product structure, particularly in the segment of products priced above 300 CNY, which saw a revenue increase of 25.2% year-on-year [7]. - The overall revenue for 2025 was 2.918 billion CNY, reflecting a decrease of 3.4% compared to the previous year, while the net profit attributable to shareholders was 354 million CNY, down 8.7% year-on-year [7]. - The gross margin improved to 63.2% for the full year 2025, an increase of 2.3 percentage points year-on-year, attributed to structural upgrades and cost optimization [7]. Financial Forecast - Projected revenues for 2026, 2027, and 2028 are 3.014 billion CNY, 3.124 billion CNY, and 3.310 billion CNY, respectively, with growth rates of 3.3%, 3.6%, and 6.0% [2]. - The net profit forecast for the same years is 356 million CNY, 369 million CNY, and 403 million CNY, with growth rates of 0.6%, 3.7%, and 8.9% [2]. - The earnings per share (EPS) is expected to be 0.70 CNY in 2026, 0.73 CNY in 2027, and 0.79 CNY in 2028 [2]. Revenue Breakdown - In 2025, the revenue from products priced above 300 CNY reached 1.7 billion CNY in Q4, marking an 82.8% increase year-on-year, while the revenue from products priced below 100 CNY fell by 68.6% [7]. - The contribution of products priced above 100 CNY accounted for 80.7% of total revenue in 2025, up by 10 percentage points year-on-year [7]. Cost and Profitability - The selling expense ratio for 2025 was 21.6%, an increase of 1.9 percentage points year-on-year, while the management expense ratio was 10.7%, up by 0.6 percentage points [7]. - The net profit margin for 2025 was 11.6%, down by 1.0 percentage points year-on-year, primarily due to increased expenditure [7].