JZJ(SH:605266) Soochow Securities·2024-05-01 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company achieved a revenue of 9.08 billion yuan in 2023, representing a year-on-year growth of 20.84%, and a net profit of 414 million yuan, up 10.72% year-on-year [9][10] - In Q1 2024, the company reported a revenue of 2.31 billion yuan, a 6.79% increase, but a net profit of 52 million yuan, which is a decline of 31.51% year-on-year [9][10] - The company is expanding rapidly in regions like Chongqing and Liaoning, with a total of 799 self-built stores and 272 acquired stores in 2023 [10] - The company has implemented a stock incentive plan, aiming for net profit growth of 60% by 2026 compared to 2023 [12] Financial Summary - The company's total assets are projected to grow from 9.95 billion yuan in 2023 to 14.49 billion yuan by 2026 [3] - Operating income is expected to increase from 9.08 billion yuan in 2023 to 15.57 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 20% [3][8] - The net profit is forecasted to rise from 414 million yuan in 2023 to 686 million yuan in 2026, reflecting a CAGR of around 20% [8][12] - The company's earnings per share (EPS) is projected to grow from 3.22 yuan in 2023 to 5.32 yuan in 2026 [8] Operational Insights - The company maintained a gross margin of 35.88% in 2023, with a slight decrease of 0.26 percentage points, while the net margin was 4.56%, down 0.28 percentage points [10] - In Q1 2024, the gross margin improved to 34.36%, while the net margin decreased to 2.24% [11] - The company distributed a cash dividend of 12.85 yuan per 10 shares in 2023, totaling 166 million yuan, with a dividend yield of 2.55% [10]