ZJHM(SH:600987) GF SECURITIES·2024-04-25 08:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 9.95 CNY per share based on a 13x PE for 2024 [2][3]. Core Insights - The company's profitability continues to improve, with stable period expenses. In 2023, the gross margin, net margin, and net profit margin (excluding non-recurring items) were 13.79%, 8.02%, and 7.30%, respectively, showing year-on-year increases of 0.68, 0.24, and 1.18 percentage points [1]. - The sales, management, R&D, and financial expense ratios were 1.27%, 1.95%, 1.91%, and -0.37%, respectively, with year-on-year changes of +0.05, +0.19, -0.07, and -0.11 percentage points [1]. - In Q4, the company reported a sales gross margin and net margin of 16.11% and 11.41%, respectively, reflecting year-on-year declines of 1.63 and 0.51 percentage points [1]. Financial Performance Summary - In 2023, the company achieved revenue of 9.666 billion CNY, a year-on-year increase of 1.00%, and a net profit attributable to shareholders of 685 million CNY, up 4.13% year-on-year. The net profit excluding non-recurring items was 705 million CNY, representing a 16.42% increase [15]. - The company’s dyeing business generated revenue and total profit of 3.793 billion CNY and 580 million CNY, respectively, with a profit margin of 15.29%, which is 10.63 percentage points higher than the industry average [16]. - The gold jewelry business reported revenue of 5.332 billion CNY and a profit of 130 million CNY, with a sales profit margin of 2.45% [16]. Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 0.77 CNY, 0.87 CNY, and 1.00 CNY, respectively, with corresponding growth rates of 17.4%, 14.0%, and 14.1% [17].