JONJEE(SH:600872) Huachuang Securities·2024-04-24 06:02Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][19]. Core Views - The company's Q1 2024 earnings exceeded expectations, showcasing early signs of reform effectiveness. The target price is set at 34.5 CNY, with the current price at 27.55 CNY [1]. - The company reported Q1 2024 revenue of 1.485 billion CNY, a year-on-year increase of 8.64%, and a net profit attributable to shareholders of 239 million CNY, up 59.70% year-on-year, indicating strong profit growth despite slight drag from non-core businesses [1][8]. - The report highlights a return to double-digit growth for the company's main product line, "Meiwei Xian," which achieved revenue of 1.46 billion CNY in Q1 2024, a 10.2% increase year-on-year [1][8]. Financial Performance Summary - Revenue for 2024 is projected to reach 5.84 billion CNY, reflecting a 13.6% growth compared to 2023, with net profit expected to be 821 million CNY, a decrease of 51.6% year-on-year [1][12]. - The company achieved a gross margin of 37.0% in Q1 2024, an increase of 5.6 percentage points year-on-year, marking the highest level in three years [1][8]. - The report anticipates a recovery in revenue growth to double digits in 2024, driven by ongoing internal reforms and strategic market expansions [1][8].