JGJC(SZ:000799) Huafu Securities·2024-04-30 05:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% within the next six months [10]. Core Views - The company faced significant revenue and profit declines in 2023, with total revenue of 2.83 billion yuan, down 30.14% year-on-year, and a net profit of 548 million yuan, down 47.77% year-on-year. The first quarter of 2024 also showed a decline in revenue and net profit, attributed to the impact of the Spring Festival timing [1][2]. - Despite the challenges, the company is focusing on strategic product lines and channel reforms, aiming for long-term growth. Key metrics such as the number of effective core terminals and the number of banquet events have shown positive growth [2][3]. Financial Summary - In 2023, the company reported a revenue of 2.83 billion yuan and a net profit of 548 million yuan. The projected revenues for 2024, 2025, and 2026 are 3.08 billion yuan, 3.58 billion yuan, and 4.24 billion yuan, respectively, indicating a recovery trend [3][4]. - The company's gross margin for 2023 was 78.3%, with a net margin of 19.4%, both showing a decline compared to the previous year [2][3]. - The earnings per share (EPS) for 2023 was 1.69 yuan, with projections of 1.84 yuan for 2024, 2.29 yuan for 2025, and 2.75 yuan for 2026 [3][4]. Market Position and Strategy - The company is focusing on its core products, particularly the 52-degree "Neican" and "Hongtan Jiugui," and has seen a 70% increase in the number of bottle opening scans for "Hongtan" products [2]. - The company has achieved 97% coverage in provincial markets and 73% in city-level markets, with a total of 1,381 signed distributors and 393 signed specialty stores [2][3].