Shanghai Jahwa(SH:600315) Guoyuan Securities·2024-03-17 16:00Investment Rating - The report maintains a "Buy" rating for Shanghai Jahwa (600315) [6][10]. Core Views - The company faced revenue and profit pressure in 2023 due to multiple internal and external factors, but profitability has been optimized. The revenue for 2023 was CNY 6.598 billion, a year-on-year decrease of 7.16%, while the net profit attributable to shareholders was CNY 500 million, an increase of 5.93% year-on-year [3][6]. - The company is undergoing organizational restructuring, which is expected to enhance growth potential in the future. The average age of newly recruited and replaced personnel is around 30 years, with a focus on digital operations and sales management [5][6]. Revenue and Profit Analysis - In 2023, the skincare category achieved revenue of CNY 1.994 billion, a year-on-year increase of 0.98%, while the personal care and baby products category saw a revenue decline of 13.35% to CNY 1.856 billion [4]. - The company’s gross margin improved to 58.97%, up 1.85 percentage points year-on-year, while the net margin increased to 7.58%, up 0.94 percentage points year-on-year [3][4]. Channel Performance - Online and special channels generated revenue of CNY 1.773 billion and CNY 361 million, respectively, with e-commerce channels growing by 4.6% year-on-year. Interest e-commerce saw growth exceeding 100% [4]. - The company closed 82 counters and stores in the department store channel, with a total of 574 counters and stores remaining by the end of the year [4]. Future Projections - The report forecasts revenue for 2024-2026 to be CNY 7.370 billion, CNY 8.033 billion, and CNY 8.650 billion, respectively, with net profits projected at CNY 633 million, CNY 742 million, and CNY 848 million [6][11].