Xiamen Jihong Technology (SZ:002803) Soochow Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% in the next six months [14][22]. Core Insights - The company achieved a revenue of 6.695 billion yuan in 2023, representing a year-on-year growth of 24.53%, and a net profit attributable to shareholders of 345.1 million yuan, up 87.57% year-on-year [21][22]. - The gross margin improved to 46.66% in 2023, an increase of 5.97 percentage points compared to the previous year [8]. - The cross-border e-commerce business saw rapid growth, with revenue reaching 4.257 billion yuan, a 37.02% increase year-on-year, driven by a recovery in key sales regions and rising consumer purchasing power [8][22]. - The company is focusing on brand building, having established several proprietary brands, which is expected to enhance revenue through brand premium [8][22]. - The company is leveraging AI to enhance operational efficiency and decision-making in advertising, with multiple AI models already in use [28]. Financial Summary - The company’s revenue and profit forecasts for 2024-2025 have been adjusted, with net profit estimates revised to 4.3 billion yuan for 2024 and 5.3 billion yuan for 2025 [22]. - The packaging business generated revenue of 2.097 billion yuan in 2023, reflecting a 5.75% year-on-year growth, maintaining a stable market position [15]. - The report highlights a stable R&D investment of 142 million yuan in 2023, despite a slight decrease of 4.40% year-on-year, with ongoing projects in packaging and e-commerce [8][15].