JINHUI(SH:603919) Xinda Securities·2024-04-22 02:00Investment Rating - The investment rating for the company is "Buy" [2]. Core Views - The company demonstrates stable operations with a slight increase in gross profit margin. The revenue for Q1 2024 reached 1.076 billion, representing a 20% year-on-year growth. The net profit was 193 million, up 22% year-on-year, with a net profit margin of 17.98% [2][4]. - The company is focusing on optimizing its product structure and expanding its market presence, particularly in the northwest region, which shows significant consumption upgrade potential [2][4]. Financial Summary - Total revenue for 2022 was 2,012 million, with a year-on-year growth rate of 12.5%. The forecast for 2023 is 2,548 million, reflecting a growth rate of 26.6% [4]. - The net profit attributable to the parent company for 2022 was 280 million, with a forecast of 329 million for 2023, indicating a year-on-year growth of 17.3% [4]. - The gross profit margin for 2022 was 62.8%, with a slight decrease to 62.4% in 2023 [4]. - The return on equity (ROE) for 2022 was 8.9%, projected to increase to 9.9% in 2023 [4]. - The earnings per share (EPS) for 2022 was 0.55, expected to rise to 0.65 in 2023 [4]. Market Strategy - The company is enhancing its market share in key regions such as Shaanxi, Ningxia, Qinghai, and Xinjiang through targeted marketing and resource allocation. It aims to maintain high growth rates in its home market while accelerating expansion in external markets [2][4]. - The company plans to implement a county-specific strategy in Gansu province to optimize operations and improve market penetration [2][4].