JONJEE(600872) Huaxin Securities·2024-10-27 09:01Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a marginal improvement in revenue and cost optimization, leading to an increase in gross profit. For the first three quarters of 2024, the company achieved revenue of 3.946 billion yuan, a slight decrease of 0.2% year-on-year, with a net profit of 576 million yuan, marking a return to profitability [2][3] - The company is undergoing a reform of its distribution system, which is expected to enhance its operational efficiency and market performance. The revenue from soy sauce and chicken essence showed improvement, while edible oil revenue declined due to inventory adjustments [3][4] Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 1.328 billion yuan, an increase of 2% year-on-year, with a net profit of 226 million yuan, up 33% year-on-year. The gross margin improved by 5 percentage points to 38.82% due to lower material and logistics costs [2][3] - The company expects EPS for 2024-2026 to be 0.94, 1.12, and 1.30 yuan respectively, with corresponding PE ratios of 26, 21, and 18 times [4] Product and Regional Performance - In Q3 2024, revenue from soy sauce, chicken essence, edible oil, and other products was 741 million, 181 million, 130 million, and 147 million yuan respectively, with year-on-year growth rates of +0.5%, +14%, -9%, and -9% [3] - Revenue by region for Q3 2024 was 294 million, 522 million, 237 million, and 147 million yuan for the eastern, southern, central-western, and northern regions respectively, with growth in all but the central-western region [3] Distribution Channel Reform - The company has increased its number of distributors to 2,395, a net increase of 311 since the beginning of the year. The reform aims to optimize resource allocation towards major clients and leverage the strengths of beer distributors in the restaurant channel [3][4]