JONJEE(SH:600872) Huaxin Securities·2024-04-24 02:00Investment Rating - The report maintains a "Buy" investment rating for the company [2][3]. Core Views - The company has shown significant improvement in profitability due to the effectiveness of reforms and a strategy to upscale soy sauce products [2]. - In Q1 2024, the company reported total revenue of 1.485 billion yuan, a 9% increase year-on-year, and a net profit attributable to shareholders of 239 million yuan [2]. - The gross profit margin increased by 6 percentage points to 36.98%, benefiting from a decrease in raw material procurement prices [2]. - The company is focusing on high-end product strategies, with plans to launch organic, reduced-salt, and zero-additive products in the future [2]. Summary by Sections Financial Performance - In Q1 2024, the company's revenue from soy sauce was 1.461 billion yuan, up 10%, with a net profit of 244 million yuan, a 60% increase [2]. - The company’s sales and management expense ratios decreased to 7.73% and 6.36%, respectively, despite increased advertising and e-commerce spending [2]. - Operating cash flow for Q1 2024 was 403 million yuan, a 106% increase [2]. Market Strategy - The company is enhancing its distribution channels, with revenue from distribution and direct sales channels reaching 1.401 billion yuan and 42 million yuan, respectively, both showing growth [2]. - The total number of distributors increased by 97 to 2,181, indicating an acceleration in recruitment and improved management of distributors [2]. - The company is also focusing on the restaurant chain sector and developing large packaging products suitable for this channel [2]. Earnings Forecast - The company’s EPS is projected to be 1.11 yuan, 1.37 yuan, and 1.68 yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 25, 20, and 16 times [3].