JONJEE(SH:600872) Tai Ping Yang·2024-04-08 16:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 32.3, compared to the last closing price of 26.39 [1][3]. Core Views - The company's annual performance met expectations, with a positive outlook on its three-year plan and stock incentive goals [1][3]. - The company reported a revenue of 5.14 billion in 2023, a decrease of 3.8% year-on-year, while the net profit attributable to shareholders was 1.70 billion, an increase of 386.5% year-on-year [2][4]. - The company aims to achieve a revenue of 10 billion for its subsidiary by 2026, with a compound annual growth rate of 25% [3][4]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 51.4 billion, with a net profit of 17.0 billion, and a non-recurring net profit of 5.2 billion [2][4]. - The fourth quarter of 2023 saw a revenue of 11.9 billion, down 14.4% year-on-year, while the net profit was 29.7 billion, up 393.7% year-on-year [2][4]. - The gross profit margin improved by 1.0 percentage points to 32.7% for the year, driven by a decrease in raw material costs [2][3]. Future Projections - The company forecasts revenues of 57.6 billion, 67.1 billion, and 79.1 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 12.0%, 16.5%, and 18.0% [3][4]. - The projected net profit for 2024 is 7.5 billion, with a significant increase in subsequent years [3][4]. Strategic Initiatives - The company has announced a stock incentive plan to grant up to 14.39 million shares to 329 employees, representing 1.83% of the total share capital, with a grant price of 14.19 per share [2][3]. - The management aims to enhance brand marketing, research and development, operational optimization, and investment mergers and acquisitions to achieve its ambitious targets [3][4].