JONJEE(SH:600872) Minsheng Securities·2024-02-01 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][8]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.534 to 1.841 billion yuan for the year 2023, with a midpoint of 1.688 billion yuan, a significant recovery from a loss of 0.592 billion yuan in the same period last year [1]. - The company is undergoing internal reforms under new management, which are anticipated to yield positive results in the medium to long term, particularly in the restaurant channel and national expansion [1]. - The company is projected to have a revenue of 5.255 billion yuan in 2023, a slight decline of 1.6% year-on-year, but expected to recover with a growth of 12.4% in 2024 [2][6]. Financial Forecasts - For 2023, the company expects a net profit margin to remain in double digits, despite short-term pressure on profitability due to increased marketing expenses and a temporary decline in sales volume [1]. - The company forecasts revenues of 5.255 billion yuan for 2023, with a projected increase to 5.908 billion yuan in 2024 and 6.652 billion yuan in 2025 [2][6]. - The net profit attributable to shareholders is expected to be 1.688 billion yuan in 2023, with projections of 0.697 billion yuan in 2024 and 0.844 billion yuan in 2025 [2][6]. Strategic Initiatives - The company is focusing on enhancing its product matrix and strengthening dealer management to drive organic growth [1]. - The report highlights the company's vision of "Rebuilding Chubang" over the next three years, emphasizing the importance of both internal and external growth strategies [1]. - The company plans to continue investing in marketing and promotional activities, which are expected to increase sales expenses slightly in the coming years [1].