JONJEE(SH:600872) KAIYUAN SECURITIES·2024-04-25 11:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's Q1 2024 performance exceeded expectations, with revenue and net profit reaching 1.49 billion and 240 million yuan respectively, representing year-on-year growth of 8.6% and 59.7% [3] - The company has adjusted its internal management, leading to significant profit performance and a rapid growth in the eastern region [4][5] - Long-term growth potential is supported by internal incentives and external expansion strategies [6] Financial Performance Summary - Q1 2024 revenue and net profit were 1.49 billion yuan and 240 million yuan, with year-on-year growth of 8.6% and 59.7% respectively [3] - The company's gross margin improved to 37.0%, an increase of 5.6 percentage points year-on-year, driven by lower raw material costs and product structure upgrades [5] - The company plans to adjust its profit forecasts for 2024-2026, predicting net profits of 800 million, 970 million, and 1.23 billion yuan respectively, with corresponding EPS of 1.02, 1.24, and 1.57 yuan [3] Business Segment Analysis - Revenue growth varied across product categories in Q1 2024, with soy sauce and chicken essence showing increases of 13.4% and 16.8% respectively, while edible oil saw a decline of 5.5% [4] - The company added 97 new distributors in Q1 2024, contributing to revenue recovery across all regions, particularly in the eastern region with a growth rate of 24.5% [4] Long-term Outlook - The company is focusing on internal growth through channel expansion and product tiering, alongside external growth via category supplementation and channel development [6] - Specific measures have been proposed to address channel transformation, organizational restructuring, and supply chain optimization, indicating a commitment to sustained long-term growth [6]