JONJEE(SH:600872) Southwest Securities·2024-04-26 09:00Investment Rating - The report maintains a "Buy" rating for Zhongju Gaoxin (600872) [1][3]. Core Views - The company's Q1 2024 performance exceeded market expectations, with revenue of 1.48 billion yuan, a year-on-year increase of 8.6%, and a net profit attributable to shareholders of 239 million yuan, up 59.7% year-on-year [2]. - The internal management reforms and channel expansion are showing initial results, with the subsidiary Meiwai Xian achieving revenue of 1.46 billion yuan, a 10.2% increase year-on-year [2]. - The gross margin for Meiwai Xian improved to 37.3%, up 6.1 percentage points year-on-year, driven by lower raw material costs and a higher proportion of high-margin products [2]. - The company is expected to see significant future growth due to the ongoing internal reforms and favorable raw material prices [2]. Summary by Sections Financial Performance - Q1 2024 revenue reached 1.48 billion yuan, with a year-on-year growth of 8.6% - Net profit attributable to shareholders was 239 million yuan, reflecting a 59.7% increase year-on-year - The gross margin for Meiwai Xian was 37.3%, up 6.1 percentage points year-on-year [2]. Business Segments - Revenue growth by product for Q1 2024: soy sauce (+13.4%), chicken essence and powder (+16.8%), cooking oil (-5.5%), and other products (-0.3%) [2]. - Revenue growth by region for Q1 2024: Eastern (+24.5%), Southern (+2.6%), Central-Western (+9.9%), and Northern (+7.61%) [2]. Cost and Profitability - The company’s non-net profit margin increased by 5.4 percentage points to 15.9% in Q1 2024, with Meiwai Xian's net profit margin at 18.2%, up 5.9 percentage points year-on-year [2]. - The sales expense ratio decreased by 0.9 percentage points to 7.7%, while the management expense ratio remained stable at 6.4% [2]. Future Outlook - The company’s internal management reforms are expected to yield significant results, with a focus on empowering frontline teams and enhancing sales efficiency [2]. - The 2024 stock incentive plan has been approved, indicating management's confidence in future growth [2]. - The company anticipates strong future performance driven by ongoing reforms and low raw material costs [2].