JONJEE(SH:600872) China Post Securities·2024-04-26 01:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q1 2024 results show a significant improvement in profit performance, exceeding expectations, with revenue and net profit increasing by 8.64% and 59.7% year-on-year, respectively [5] - The management restructuring at Meiwai Xian has led to a renewed focus, resulting in double-digit revenue growth and a notable improvement in profit margins [6] - The company is focusing on core products such as soy sauce and chicken essence, which have shown strong growth, while reducing the proportion of lower-margin products like cooking oil [6] - The company has expanded its distribution network, adding 133 new distributors in Q1 2024, bringing the total to 2,181 [6] - Historical issues are gradually being resolved, and the company's three-year strategic plan aims for high-quality growth through channel, product, and organizational innovations [7] Financial Summary - For Q1 2024, the company reported revenue of 1.485 billion yuan and a net profit of 239 million yuan, with significant year-on-year growth [5] - The company expects revenue to reach 5.764 billion yuan in 2024, with a year-on-year growth of 12.17%, and net profit to be 821 million yuan, reflecting a decrease of 51.61% [8] - The projected earnings per share (EPS) for 2024 is 1.05 yuan, with a price-to-earnings (P/E) ratio of 28 times [8] - The company's gross margin improved to 36.98% in Q1 2024, up 5.57 percentage points year-on-year [6]