JONJEE(SH:600872) Great Wall Securities·2024-05-13 23:32Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - In Q1 2024, the company achieved a revenue of 1.485 billion yuan, representing a year-on-year growth of 8.64%, and a net profit attributable to shareholders of 239 million yuan, up 59.70% year-on-year [2][3] - The company is experiencing significant improvements in profitability, with a gross margin of 36.98%, an increase of 5.57 percentage points year-on-year, driven by lower procurement prices and optimized product mix [3] - The new management team is effectively implementing channel reforms, which are expected to enhance market coverage and contribute to revenue growth [3] Financial Performance Summary - Revenue for 2022 was 5.341 billion yuan, with a projected increase to 5.837 billion yuan in 2024, reflecting a growth rate of 13.6% [2][11] - The net profit attributable to shareholders is expected to rise from 776 million yuan in 2024 to 1.196 billion yuan in 2026, with corresponding EPS increasing from 0.99 yuan to 1.52 yuan [2][3] - The company's return on equity (ROE) is projected to improve from 14.0% in 2024 to 16.5% in 2026 [2][11] Segment Performance - The main product line, including soy sauce and chicken essence, showed strong growth, with soy sauce revenue increasing by 13.44% year-on-year [3] - The eastern region of China experienced the fastest growth, with a year-on-year revenue increase of 24.48% in Q1 2024 [3] - The company added 97 new distributors in Q1 2024, indicating effective channel management and expansion efforts [3]