Shanghai Jahwa(600315) Changjiang Securities·2024-05-16 03:02Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Insights - The company reported a revenue of 1.905 billion yuan in Q1 2024, a year-on-year decline of 3.76%, while the net profit attributable to the parent company was 256 million yuan, an increase of 11.18%. The non-recurring net profit reached 293 million yuan, up 29.17% year-on-year [3]. - The business structure focus has led to margin optimization, and organizational changes have improved cost efficiency. The gross margin for Q1 2024 increased by 2 percentage points year-on-year, primarily due to lower procurement costs for raw materials and a strategic focus on higher-priced, higher-margin products [3]. - The company’s average selling prices for skincare and personal care products increased, indicating a positive trend in product pricing [3]. Financial Performance Summary - In Q1 2024, the skincare category generated 340 million yuan in revenue, personal care and household cleaning products accounted for 1.111 billion yuan, and the maternal and infant category brought in 390 million yuan. The average selling price for skincare products rose by 8.27% year-on-year, while personal care products increased by 6.9% [19]. - The company expects significant improvements in profitability as it enters the second quarter, driven by seasonal sales increases and new product launches [30]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.85 yuan, 0.96 yuan, and 1.12 yuan, respectively [30].