JINHUI(SH:603919) Guoyuan Securities·2024-04-22 01:30Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a total revenue of 1.076 billion yuan in Q1 2024, representing a year-on-year increase of 20.41%. The net profit attributable to the parent company was 221 million yuan, up 21.58% year-on-year [6]. - The revenue from products priced above 300 yuan increased by 86.48% year-on-year, indicating a successful upgrade in product structure [6]. - The company continues to see strong growth in its domestic market, with a 23% year-on-year increase in domestic revenue [6]. Summary by Sections Financial Performance - In Q1 2024, the company achieved total revenue of 1.076 billion yuan (+20.41%) and a net profit of 221 million yuan (+21.58%). The net profit excluding non-recurring items was 222 million yuan (+22.48%) [6]. - The revenue breakdown for different product price segments shows that products priced above 300 yuan generated 191 million yuan, those between 100-300 yuan generated 551 million yuan, and those below 100 yuan generated 324 million yuan, with respective year-on-year changes of +86.48%, +24.13%, and -4.20% [6]. Market Dynamics - The company’s domestic revenue reached 848 million yuan, growing by 22.55% year-on-year, while the revenue from outside the province was 218 million yuan, up 13.23% [6]. - The number of domestic and foreign distributors increased, with domestic distributors totaling 283 and foreign distributors totaling 609 by the end of Q1 2024 [6]. Profitability and Cost Management - The gross margin for Q1 2024 was 65.40%, an increase of 0.43 percentage points year-on-year, while the net profit margin was 20.55%, up 0.20 percentage points [6]. - The total expense ratio remained stable, with sales, management, R&D, and financial expense ratios showing slight changes [6]. Strategic Initiatives - The company is focusing on enhancing its market share in the domestic market while accelerating its national expansion, particularly in the Northwest, East China, and Northern markets [6]. - The report anticipates that as the company expands its revenue base outside its home province, there will be opportunities to optimize its expense ratio and improve profit margins [6]. Future Projections - The company is projected to achieve net profits of 404 million yuan, 494 million yuan, and 600 million yuan for the years 2024, 2025, and 2026, respectively, with growth rates of 22.97%, 22.15%, and 21.44% [6][7].