JONJEE(SH:600872) Huaxin Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for Zhongju Gaoxin (600872.SH) [2] Core Views - The company's main operations are stable, and there are expectations for improvements from ongoing reforms [2] - The company has released its 2023 annual report and a 2024 restricted stock incentive plan [2] - The company is expected to enhance its organizational vitality through the stock incentive plan, which aims to motivate employees and improve competitiveness [3] Financial Performance Summary - In 2023, the total revenue was 5.139 billion yuan, a decrease of 4% year-on-year, primarily due to the real estate and belt sectors [2] - The net profit attributable to shareholders was 1.697 billion yuan, a significant turnaround from a loss in the previous year, mainly due to the resolution of litigation and the reversal of provisions [2] - The gross profit margin for 2023 was 32.71%, an increase of 1 percentage point, attributed to lower raw material costs and product structure optimization [2] - The company expects to maintain stable raw material prices and further reduce production costs with new equipment coming online [2] Business Segment Analysis - The revenue from the main product line, Meiwai Xian, was 4.932 billion yuan, a slight decrease of 0.5% year-on-year [2] - Revenue breakdown by product category for 2023: soy sauce (3.028 billion yuan, +0.1%), chicken essence (676 million yuan, +13%), cooking oil (446 million yuan, -11%), and other products (716 million yuan, -7%) [2] - The company has seen an increase in the number of distributors, with a net addition of 81 to a total of 2,084 by the end of 2023 [2] Future Outlook - The company has set a strategic revenue target of 10 billion yuan for Meiwai Xian by 2026, with a profit target of 1.5 billion yuan [4] - Earnings per share (EPS) forecasts for 2024-2026 are 1.11, 1.37, and 1.64 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 24, 19, and 16 times [4] - The report anticipates continued growth in revenue and profitability driven by product matrix expansion, marketing reforms, and development of the catering channel [4]