Shanghai Jahwa(SH:600315) EBSCN·2024-04-23 13:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [4]. Core Insights - In Q1 2024, the company reported a revenue of 1.905 billion yuan, a year-on-year decline of 3.76%, while net profit increased by 11.18% to 256 million yuan, resulting in a net profit margin improvement of 2 percentage points to 13% [8]. - The increase in net profit is attributed to improved gross margins and a decrease in operating expense ratios, leading to a net profit margin increase of 1.81 percentage points to 13.45% [8]. - The company’s domestic and overseas business revenue contributions were 82% and 18%, respectively, with declines of approximately 2% and 11% year-on-year [8]. - The skincare and personal care segments saw revenue declines of 17% and 12%, respectively, while the cooperative brand segment grew by 3% [8]. - The company is focusing on high-margin products and optimizing its product structure, which has contributed to a gross margin increase of 2.07 percentage points to 63.27% in Q1 2024 [8]. Financial Summary - Revenue for 2022 was 7,106 million yuan, with projections of 6,598 million yuan for 2023, and expected growth to 9,271 million yuan by 2026 [9]. - Net profit for 2022 was 472 million yuan, with an expected increase to 910 million yuan by 2026, reflecting a growth rate of 14.79% [9]. - The company's EPS is projected to rise from 0.70 yuan in 2022 to 1.35 yuan by 2026 [9]. - The P/E ratio is expected to decrease from 29 in 2022 to 15 by 2026, indicating a more attractive valuation over time [9].