Xiamen Jihong Technology (SZ:002803) KAIYUAN SECURITIES·2024-04-28 00:32Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a 3.8% year-on-year decline in revenue for Q1 2024, with a significant 39.2% drop in net profit attributable to shareholders [5] - The company is a leader in cross-border social e-commerce, leveraging data and technology to create unique barriers to entry, which strengthens its core competitiveness and supports long-term growth [5][9] - The company is focusing on brand development and expanding into new markets, which has temporarily pressured short-term business growth [6] Financial Performance Summary - For Q1 2024, the company achieved revenue of 1.324 billion yuan, a decrease of 3.7% year-on-year, and a net profit of 43 million yuan, down 39.2% [5] - The gross margin for Q1 2024 was 40.6%, down 5.0 percentage points, while the net margin was 3.0%, down 1.9 percentage points [5] - The company expects to maintain its profit forecasts, projecting net profits of 416 million yuan, 500 million yuan, and 575 million yuan for 2024, 2025, and 2026, respectively [5][8] Business Segment Insights - The packaging business saw revenue growth, while the cross-border e-commerce segment experienced a decline due to a strategic focus on brand business and new market expansion [5][6] - The company is launching multiple AI vertical models to enhance data analysis capabilities and improve advertising effectiveness [6] - The company is developing proprietary brands such as SenadaBikes and Veimia, which are expected to enhance profitability in the future [6]