Core Viewpoint - The company reported a mixed financial performance for 2024, with revenue growth but a significant decline in net profit, indicating challenges in profitability despite operational improvements [2][3][5]. Financial Performance - In 2024, the company achieved a revenue of 5.519 billion, a year-on-year increase of 7.4%, while the net profit attributable to shareholders was 893 million, down 47.4% [2]. - The fourth quarter of 2024 saw a revenue of 1.57 billion, up 32.6% year-on-year, but the net profit dropped by 89.3% to 320 million [2]. - The company's gross margin improved to 39.8% for the year and 45.8% for Q4, reflecting a year-on-year increase of 7.1 and 12.7 percentage points, respectively [5]. Business Segments - The "Meiwei Xian" segment generated a revenue of 5.074 billion in 2024, with a net profit of 707 million, representing a year-on-year growth of 2.86% and 26.02%, respectively [2][3]. - The revenue from direct sales channels grew significantly by 26.42% in 2024, while distribution channels saw a slight decline of 1.01% [3]. Market Expansion - The total number of distributors for "Meiwei Xian" reached 2,554 by the end of 2024, an increase of 470 compared to the end of 2023, indicating a focus on expanding into lower-tier markets [4]. - The company achieved a county development rate of 75.35% and a city development rate of 95.81% in 2024 [4]. Strategic Initiatives - The company implemented a three-tier organizational structure and enhanced customer management, leading to improved distributor numbers and market penetration [7]. - The e-commerce business experienced over 30% revenue growth, contributing positively to overall performance [3][7]. Future Outlook - For Q1 2025, the company anticipates a potential decline in sales revenue due to a high base in Q1 2024 and a focus on market price recovery [8]. - The company aims to achieve three key operational goals in 2025: complete at least one industry acquisition, ensure continuous revenue growth, and build core capabilities in precise marketing, continuous innovation, and refined operations [8].

Investment Rating - The report maintains an "Outperform" rating for Jonjee Hi-Tech Industrial and Commercial Holding [2][7] Core Insights - Jonjee achieved a revenue of RMB 5.52 billion in 2024, representing a year-on-year increase of 7.4%, while the net profit attributable to shareholders decreased by 47.4% to RMB 890 million [4][9] - In Q4 2024, the company reported a revenue of RMB 1.57 billion, a significant year-on-year increase of 32.6%, although the net profit attributable to shareholders fell by 89.3% to RMB 320 million [4][9] - The company is expected to continue expanding its channels and sales regions while enhancing management efficiency, with projected revenues of RMB 5.99 billion, RMB 6.56 billion, and RMB 7.23 billion for 2025, 2026, and 2027 respectively [7][13] Financial Performance Summary - Revenue and Net Profit Forecast: - 2024 Revenue: RMB 5,519 million - 2025 Revenue Estimate: RMB 5,988 million (up 8.5% YoY) - 2026 Revenue Estimate: RMB 6,557 million (up 9.5% YoY) - 2027 Revenue Estimate: RMB 7,232 million (up 10.3% YoY) - 2024 Net Profit: RMB 893 million - 2025 Net Profit Estimate: RMB 972 million (up 16.2% YoY) - 2026 Net Profit Estimate: RMB 1,084 million (up 17.6% YoY) - 2027 Net Profit Estimate: RMB 1,213 million (up 18.0% YoY) [2][8][12] Profitability Analysis - The gross profit margin increased to 39.8% in 2024, up 7.1 percentage points from the previous year, while the net profit margin attributable to shareholders decreased to 16.2% [6][12] - In Q4 2024, the gross margin rose to 45.8%, with a net profit margin of 20.2% [6][12] Market Position and Strategy - The company is focusing on channel transformation and expanding its online direct sales, which saw a growth of 11.8% in 2024, while traditional distribution channels experienced a decline of 8.4% [5][11] - By the end of the reporting period, Jonjee achieved a county-level market penetration of 75.4% and a prefecture-level penetration of 95.8% [5][11]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 5.519 billion yuan in 2024, representing a year-on-year increase of 7.4%, while the net profit attributable to shareholders was 893 million yuan, a decrease of 47.4% [4][10] - The company is expected to recover minority interests, which is anticipated to enhance profits in 2025 [9] - The company has implemented significant reforms, resulting in improved profitability and a focus on market price recovery in 2025 [9][10] Financial Performance Summary - In 2024, the company reported a revenue of 5.519 billion yuan, with a net profit of 893 million yuan and a non-recurring net profit of 670 million yuan, showing a 28% increase year-on-year [4][10] - The fourth quarter of 2024 saw a revenue of 1.57 billion yuan, up 32.6% year-on-year, but the net profit dropped by 89.3% to 320 million yuan [4][10] - The gross margin for 2024 was 39.8%, an increase of 7.1 percentage points year-on-year, driven by lower raw material costs and improved production efficiency [7][14] Revenue Breakdown - The company's main product, Meiwai Xian, achieved a revenue of 5.074 billion yuan in 2024, with a net profit of 707 million yuan, reflecting a year-on-year growth of 2.86% and 26.02% respectively [4][5] - The revenue from direct sales channels grew by 26.42% in 2024, while distribution channels saw a decline of 1.01% [5][6] Cost and Expense Management - The company’s expense ratio for 2024 was 19.1%, a decrease of 0.5 percentage points year-on-year, with sales expenses increasing due to channel reforms and promotional activities [8][15] - The company’s net profit margin for 2024 was 16.2%, down 16.8 percentage points year-on-year, but the adjusted net profit margin showed an increase [7][14] Future Outlook - The company aims to achieve three key operational goals in 2025: complete at least one industrial acquisition, ensure continuous revenue growth, and build three core capabilities: refined marketing, continuous innovation, and precise operations [9][10] - The forecast for net profit attributable to shareholders in 2025 is adjusted to 966 million yuan, reflecting a 1.6% decrease from previous estimates [10]

Market Overview - The market showed resilience this week, with the three major indices closing in the green despite a decline in individual stock performance. The Shanghai Composite Index fell by 3.11%, the Shenzhen Component Index by 5.13%, and the ChiNext Index by 6.73% [1][9][12] - The market was supported by the "national team" stabilizing actions and expectations for domestic demand policies, leading to a recovery after a period of decline [2][12] Economic Analysis - The implementation of "reciprocal tariffs" has prompted proactive measures from China, with the national team maintaining market stability. This is expected to impact the US economy negatively and increase inflationary pressures [2][9] - March CPI showed a year-on-year decline of 0.1%, with a narrowing drop compared to February. The core CPI, however, rose by 0.5%, indicating a mild improvement in consumer demand [10][12] - The PPI for March decreased by 2.5% year-on-year, influenced by falling international oil prices, which also affected domestic prices [10][12] Policy Outlook - The liquidity in April is expected to remain stable and slightly loose, with potential for interest rate cuts and reserve requirement ratio reductions. The central bank's recent operations indicate a supportive stance towards liquidity [11][12] - The government is likely to implement more proactive macroeconomic policies to counter external uncertainties, with a focus on boosting consumption and investment [10][11][12] Sector Recommendations - Investment focus is recommended on sectors such as finance, food and beverage, public utilities, retail, and technology, media, and telecommunications (TMT) [3][12] Stock Performance Tracking - The report includes a tracking of potential stocks for April, with notable mentions such as China Rare Earth (up 7.99% over the period) and Haidilao (up 3.60%) [20][21]

Group 1: Pharmaceutical Industry - The tariff environment has limited short-term disruptions to the pharmaceutical industry, with a focus on the global competitiveness of domestic innovative drugs [2][17][19] - Domestic innovative drug companies have captured significant market shares, such as BTK inhibitors holding 75% and PD-1/PD-L1 monoclonal antibodies over 70% in the domestic market [2][17] - Several Chinese innovative drugs are entering a harvest phase, with Zebutine expected to achieve sales of $2.6 billion in 2024, reflecting a year-on-year growth of 105% [2][17] - A recommended list of leading biotech and pharmaceutical companies includes BeiGene, Innovent Biologics, and Hengrui Medicine among others [2][17] Group 2: Chemical Industry - Juhua Co., Ltd. - Juhua Co., Ltd. is expected to see significant growth in Q1 2025, with projected net profit ranging from 760 to 840 million yuan, representing a year-on-year increase of 145% to 171% [5][6][36] - The company benefits from a strong position in the refrigerant market, with a production quota of 34% for third-generation refrigerants [6][36] - The refrigerant segment has shown a substantial increase in both volume and price, with revenues reaching 2.618 billion yuan, up 64.63% year-on-year [6][36] Group 3: Aluminum Industry - China Aluminum Corporation - China Aluminum Corporation is projected to achieve a net profit of 3.4 to 3.6 billion yuan in Q1 2025, reflecting a year-on-year increase of 53% to 63% [8][10] - The company is enhancing its resource strategy and has a significant aluminum ore reserve of approximately 2.7 billion tons [8][10] - Expansion projects are underway, with a new 500,000-ton electrolytic aluminum capacity expected to come online in December 2024 [10]

Group 1: Fixed Income Market Insights - The revision of the Shanghai Stock Exchange's guidelines has tightened the issuance review of urban investment bonds, leading to credit differentiation among issuers [5][6][8] - The 2025 fiscal policy aims to "develop while reducing debt," with a focus on replacing hidden debts and controlling new financing for urban investment [9][10] - The urban investment bond market is showing signs of differentiation, with credit spreads widening between regions, indicating a shift towards market-oriented transformations [10][12] Group 2: Real Estate and Construction Sector - The company "I Love My Home" has turned a profit, with net profit expected to reach 1.6 billion yuan in 2025, driven by cost control and a recovering second-hand housing market [24][25] - The overall GTV (Gross Transaction Value) for the company increased slightly, reflecting a positive trend in the real estate sector [25][26] Group 3: Food and Beverage Sector - Zhongju Gaoxin's seasoning business has returned to positive growth, with revenue expected to reach 9.5 billion yuan in 2025, despite a slight decline in profit due to previous legal issues [29][30] - The company is focusing on internal reforms and external acquisitions to support long-term growth [33] Group 4: Retail Sector - Jihong Co. reported a revenue decline of 17.4% in 2024, but anticipates growth through AI empowerment and international expansion [35][36] - The cross-border e-commerce segment faced challenges, but adjustments in marketing strategies are expected to lead to a recovery [36][37] Group 5: Home Appliances Sector - Xiaoxiong Electric's performance improved significantly in Q4 2024, with revenue reaching 16.19 billion yuan, supported by government incentives and a focus on quality OEM business [39][40] - The company is expected to see continued growth in both domestic and international sales, particularly in the kitchen appliance segment [41][42]

Macro Strategy - The report suggests that the depreciation of the RMB against the USD may be a response to overseas risk events and a proactive measure to release risks in currency management, with a gradual approach expected in the depreciation process [1][12] - The expected range for USDCNY is projected to gradually rise to 7.40-7.50, indicating a controlled release of risks while maintaining a stable exchange rate [12] Fixed Income - The report on Weicai Convertible Bond indicates an expected listing price range of 112.72 to 125.13 RMB, with a subscription rate of 0.0046% and a conversion premium of approximately 35% [2][14] - The report on Anji Convertible Bond anticipates a listing price range of 109.63 to 122.00 RMB, with a subscription rate of 0.0037% and a conversion premium of around 28% [3][15] - The report on Qingyuan Convertible Bond expects a listing price range of 100.22 to 111.65 RMB, with a subscription rate of 0.0020% and a conversion premium of about 25% [3][17] Industry Analysis - The engineering machinery sector is entering an upward cycle, with a projected 2-3 years of growth ahead, supported by significant share buybacks from major companies like Sany Heavy Industry and XCMG [20][21] - The report highlights a 38% year-on-year increase in domestic excavator sales in Q1 2025, indicating strong market demand and potential for upward valuation adjustments [21] - The engineering machinery companies have low exposure to the US market, with Sany's exposure at approximately 3%, making the overall risk manageable [21] Company Insights - Pengding Holdings reported a revenue of 35.14 billion RMB and a net profit of 3.62 billion RMB for 2024, with significant growth in the automotive and server sectors [5][22] - The company is expanding its production capacity with a projected capital expenditure of 5 billion RMB in 2025, reflecting confidence in future market demand [6][22] - The report on Jerey Co. indicates a projected net profit of 3.03 billion RMB for 2025, with a focus on overseas expansion despite tariff risks [7][8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - In 2024, the company has experienced a significant acceleration in its core business growth, supported by a decline in raw material costs, leading to notable profit improvements. The company is expected to continue its steady and positive growth into 2025, with a slight increase in profitability due to ongoing cost improvements. The implementation of an employee stock ownership plan is expected to enhance personnel motivation and improve the execution of the company's long-term strategy. Additionally, the dividend payout ratio for 2024 has increased to 75.2% from 65% in 2023, enhancing shareholder returns [2][7]. Financial Performance Summary - For the year 2024, the company achieved total revenue of 26.901 billion yuan, representing a 9.53% increase, with core business revenue of 25.128 billion yuan, up 10.14%. The net profit attributable to shareholders was 6.344 billion yuan, reflecting a 12.75% increase, while the net profit excluding non-recurring items was 6.069 billion yuan, up 12.51%. In Q4 2024, total revenue reached 6.502 billion yuan, a 10.03% increase, with core business revenue of 6.162 billion yuan, up 12.85%. The net profit attributable to shareholders for Q4 was 1.529 billion yuan, a 17.82% increase, and the net profit excluding non-recurring items was 1.455 billion yuan, up 17.07% [4][5]. Business Growth and Structure Optimization - The company's core business revenue for the year totaled 25.128 billion yuan, with a growth rate of 10.14%, and Q4 growth at 12.85%. The product breakdown shows soy sauce revenue at 13.758 billion yuan (+8.87%), seasoning sauce at 2.669 billion yuan (+9.97%), oyster sauce at 4.615 billion yuan (+8.56%), and other products at 4.086 billion yuan (+16.75%). Online sales have seen significant growth, with total online revenue of 1.243 billion yuan, up 39.78%, and Q4 growth at 59.25%. The number of distributors increased to 6,707, up by 116 from the previous year, indicating a stabilization and recovery in distribution channels [5][6]. Profitability Improvement - The company's net profit margin improved by 0.67 percentage points to 23.58%, with a gross margin increase of 2.26 percentage points to 37%. The expense ratio rose by 1.49 percentage points to 9.48%. In Q4, the net profit margin increased by 1.56 percentage points to 23.52%, with a gross margin of 37.66%, reflecting a significant improvement driven by a decrease in direct material costs for soy sauce, oyster sauce, and sauces, which fell by 6.8%, 7.6%, and 6.5%, respectively [6][7]. Future Earnings Projections - The company is projected to have earnings per share (EPS) of 1.28 yuan in 2025 and 1.39 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 33 and 30 times, respectively [7].

Core Viewpoint - The report from China Merchants Securities indicates that the liquor sector is undervalued and offers both defensive and offensive opportunities, while the food sector is poised for upward trends and high growth potential [1][2]. Liquor Sector - High-end liquor demand remains stable, with companies focusing on controlling supply to maintain prices, leading to a robust performance in Q1 [3]. - Moutai's price remains stable, with expectations of double-digit growth in Q1, while Wuliangye is projected to see slight growth [3]. - The performance of mid-range liquor companies is mixed, with some actively reducing market burdens [3]. - Regional brands continue to perform strongly, with competition intensifying in certain markets [3]. Food Sector - Overall demand in the food sector is stabilizing, with retail sales growth improving [4]. - The dairy sector is expected to see improved demand, while the seasoning and snack sectors continue to exhibit high growth [4][5]. - The seasoning sector is experiencing a recovery, although some companies face pressure due to high base effects from the previous year [6][7]. - The beer sector is adopting inventory reduction strategies, with demand expected to improve in the coming year [8]. Snack Foods - The snack food sector is performing steadily, with attention on single product growth and new channel opportunities [9]. - The demand for ready-to-eat foods is weak, with some companies facing pressure on sales and profits [10].

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 31.35 CNY [2][8]. Core Views - The company achieved a total revenue of 5.52 billion CNY in 2024, representing a year-on-year increase of 7.4%. The net profit attributable to shareholders was 890 million CNY, while the net profit excluding non-recurring items was 671 million CNY, showing a significant year-on-year growth of 28.0% [2][8]. - In Q4 2024, the company recorded a revenue of 1.57 billion CNY, a year-on-year increase of 32.6%, with a net profit of 317 million CNY and a non-recurring net profit of 119 million CNY, reflecting a remarkable year-on-year growth of 93.9% [2][8]. - The company is focused on strategic optimization and gradual reform, aiming to enhance its core capabilities in fine marketing, continuous innovation, and lean operations [2][8]. Financial Performance Summary - The company reported a total revenue of 5,519 million CNY for 2024, with a year-on-year growth rate of 7.4%. The projected revenue for 2025 is 6,151 million CNY, indicating an expected growth rate of 11.4% [8]. - The net profit attributable to shareholders for 2024 was 893 million CNY, with a projected slight increase to 900 million CNY in 2025, reflecting a growth rate of 0.7% [8]. - The earnings per share (EPS) for 2024 was 1.14 CNY, with projections of 1.15 CNY for 2025, 1.32 CNY for 2026, and 1.45 CNY for 2027 [8]. Market Position and Strategy - The company aims to achieve continuous revenue growth and plans to complete at least one industrial acquisition in 2025 to fill gaps in its product categories [2][8]. - The company has successfully reduced inventory levels to a safe range and anticipates improved operational performance in Q2 2025 as the market stabilizes [2][8]. - The report highlights the potential for profit growth through the recovery of minority stakes and ongoing cost advantages, alongside the expected benefits from acquisitions [2][8].