JONHON(SZ:002179) Minsheng Securities·2024-04-27 12:00Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 33.92 CNY [1] Core Insights - In Q1 2024, the company's net profit attributable to shareholders decreased by 24.8% year-on-year to 750 million CNY, slightly below market expectations, but showed a 69% increase compared to the previous quarter [1] - The company's revenue for Q1 2024 was 4.01 billion CNY, reflecting a year-on-year decline, marking the first quarterly drop since Q2 2020, primarily due to a slowdown in industry demand [1] - The gross profit margin for Q1 2024 decreased to 19.8%, while the net profit margin remained at a high level of 35.6% [1] - The company has improved its operating cash flow, with a significant increase in other income by 628.2% to 54 million CNY, attributed to tax incentives [1] Financial Performance Summary - Revenue for 2023 was 20.074 billion CNY, with a projected growth rate of 12.6% for 2024, reaching 22.604 billion CNY [2] - The net profit attributable to shareholders for 2023 was 3.339 billion CNY, expected to grow to 3.927 billion CNY in 2024, reflecting a growth rate of 17.6% [2] - The company's earnings per share (EPS) for 2023 was 1.58 CNY, projected to increase to 1.85 CNY in 2024 [2] - The price-to-earnings (PE) ratio is expected to decrease from 22 in 2023 to 18 in 2024 [2] Strategic Development - The company is positioned as a leader in the domestic special connector market and aims to advance towards becoming a "global first-class" interconnection solution provider [1] - It plans to expand its strategic emerging industries and enhance its industrial layout, focusing on creating a "second growth curve" while maintaining innovation-driven development [1]