JONJEE(600872)2024-10-27 06:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [3]. Core Insights - The company reported a slight decline in revenue for the first three quarters of 2024, with total revenue of 3.95 billion, a year-on-year decrease of 0.2%. However, it achieved a net profit of 576 million, marking a return to profitability compared to the previous year [3][4]. - In Q3 2024, the company generated revenue of 1.33 billion, a year-on-year increase of 2.2%, and a net profit of 230 million, up 33% year-on-year, indicating strong profit growth despite slightly lower revenue than expected [3][4]. - The new management team has extensive experience in consumer goods and has set an ambitious three-year plan aimed at enhancing the company's performance in the seasoning business [3]. Financial Summary - For 2024, the company forecasts net profits of 800 million, 970 million, and 1.25 billion for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of -53%, +22%, and +28.7% [3][4]. - The gross margin for Q3 2024 improved to approximately 38.1%, a year-on-year increase of 5 percentage points, driven by lower raw material costs and improved operational efficiency [4]. - The company’s return on equity (ROE) is projected to be 11.8% in 2024, increasing to 18.0% by 2026, reflecting improved profitability and efficiency [4].