JONJEE(600872) Tai Ping Yang·2024-10-29 02:17Investment Rating - The report maintains a "Buy" rating for Zhongju Gaoxin (600872) with a target price of 29.1, compared to the last closing price of 23.87 [1][6]. Core Views - The Q3 performance of Zhongju Gaoxin exceeded expectations, with internal adjustments showing some effectiveness. The company reported a revenue of 3.946 billion yuan for the first three quarters of 2024, a slight decrease of 0.17% year-on-year, while the net profit attributable to shareholders reached 576 million yuan, reflecting a growth of 19.25% year-on-year [1][2]. - In Q3 2024, the company achieved a revenue of 1.328 billion yuan, up 2.23% year-on-year, and a net profit of 226 million yuan, which is a significant increase of 32.90% year-on-year. The adjusted net profit was 213 million yuan, marking a growth of 27.66% [1][2]. - The company has made positive adjustments in its main seasoning business, with revenue from its flagship products such as soy sauce and chicken essence showing improvement. The overall price increase for these products was around 2%-3% [1][2]. Financial Summary - For 2024, the company is expected to achieve revenues of 5.424 billion yuan, with a growth rate of 5.54%. The net profit is projected to be 766 million yuan, reflecting a decrease of 54.88% year-on-year [2][4]. - The gross profit margin for Q3 2024 improved by 4.9 percentage points to 38.1%, primarily due to a decline in raw material costs [1][4]. - The company anticipates a gradual recovery in its operations, with new distributors and restaurant channels contributing to revenue growth in the future [1][2].