JONJEE(SH:600872) Huafu Securities·2024-04-24 02:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 34.25 CNY per share, reflecting a 35 times PE for 2024 [5][11]. Core Views - The company reported Q1 2024 results that significantly exceeded expectations, with 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 [2][3]. - The company is focusing on core product categories such as soy sauce and chicken essence, while actively expanding its market presence in weaker regions [2]. - The company is undergoing deep reforms to enhance its organizational capabilities, aiming for substantial growth in the future [3]. Financial Performance Summary - Q1 2024 gross margin was 36.98%, an increase of 5.57 percentage points year-on-year, driven by lower procurement prices and product structure optimization [3]. - The company achieved a net profit margin of 16.1% in Q1 2024, up 5.15 percentage points year-on-year [3]. - Revenue projections for 2024-2026 are 7.7 billion CNY, 9.5 billion CNY, and 12.2 billion CNY, respectively, with expected growth rates of -55%, 23%, and 29% [3][4]. Strategic Initiatives - The company has set a three-year strategic plan for its subsidiary, aiming for revenue and operating profit targets of 10 billion CNY and 1.5 billion CNY by 2026 [3]. - Continuous internal reforms are being implemented to improve organizational structure and internal processes, which are expected to drive future performance [3]. Market Position and Growth Potential - The company is actively increasing its product mix coverage and enhancing its distribution channels, with significant revenue growth in various regions [2]. - The report indicates strong future growth potential due to market capacity and the ongoing release of reform benefits [3].