JONJEE(SH:600872) Haitong Securities·2024-10-28 03:15Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company is experiencing revenue pressure, but profit margins are continuing to improve [3]. - In Q3 2024, the company's net profit attributable to shareholders increased by 32.9% year-on-year, driven by lower raw material costs and optimized product structure [5][6]. - The company achieved a revenue of 3.946 billion yuan in the first three quarters of 2024, a slight decrease of 0.17% year-on-year, while the net profit attributable to shareholders was 576 million yuan, with a non-recurring net profit of 552 million yuan, reflecting a year-on-year increase of 19.25% [5][6]. Financial Performance Summary - In Q3 2024, the company reported a revenue of 1.328 billion yuan, up 2.23% year-on-year, and a net profit of 226 million yuan, up 32.9% year-on-year [5]. - The gross profit margin for the first three quarters of 2024 was 37.36%, an increase of 4.79 percentage points year-on-year, attributed to declining costs [6]. - The company’s revenue from chicken essence and powder increased by 13.99% year-on-year in Q3 2024, while other product categories showed mixed results [6]. Regional and Channel Performance - In Q3 2024, revenue from the eastern region grew by 8.57% year-on-year, while the central and western regions saw declines [6]. - The company has increased its dealer network by 12.99% compared to the end of 2023, focusing on the central and northern regions [6]. Earnings Forecast and Valuation - The company is expected to have earnings per share (EPS) of 0.98, 1.12, and 1.32 yuan for the years 2024, 2025, and 2026 respectively [7]. - The report suggests a reasonable valuation range of 34.3 to 39.2 yuan based on a price-to-earnings (P/E) ratio of 35-40 times for 2024 [6][7].