JONJEE(SH:600872) KAIYUAN SECURITIES·2024-04-02 16:00Investment Rating - The investment rating for the company is upgraded to "Buy" [2][6]. Core Views - The company has launched a stock incentive plan aimed at enhancing internal motivation, which is expected to drive performance [2][6]. - The 2023 financial performance met expectations, with revenue and net profit showing a slight decline but a significant recovery in profitability due to expected liability reversals [6][7]. - The company anticipates substantial growth in revenue and profit over the next three years, supported by both internal growth and potential acquisitions [9][10]. Financial Performance Summary - In 2023, the company reported revenue of 5.14 billion yuan and a net profit of 1.70 billion yuan, reflecting a year-on-year decline of 3.8% in revenue but a turnaround in profit [6][10]. - The fourth quarter of 2023 saw a revenue of 1.19 billion yuan and a net profit of 2.97 billion yuan, with a notable decline in revenue attributed to seasonal factors and internal management adjustments [6][7]. - The gross margin for the company's seasoning products improved by 2.0 percentage points to 32.2% in 2023, driven by cost reductions and product mix optimization [8][10]. Future Projections - The company projects revenue growth rates of no less than 12%, 32%, and 95% for the years 2024, 2025, and 2026, respectively, alongside increasing operating profit margins and return on equity [6][9]. - The earnings per share (EPS) are expected to reach 0.96 yuan in 2024, 1.23 yuan in 2025, and 1.56 yuan in 2026, indicating a strong growth trajectory [6][10].