JONJEE(600872) Tianfeng Securities·2024-11-06 01:38Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5][13]. Core Views - The company's performance in Q3 showed a quarter-on-quarter improvement, with expectations for steady growth throughout the year. The revenue for Q1-3 of 2024 is projected to be 57.56 billion, 66.21 billion, and 76.35 billion for 2024-2026, reflecting a growth rate of 12%, 15%, and 15% respectively [3][4]. - The company achieved a net profit of 5.76 billion for Q1-3 of 2024, with a significant increase in the net profit margin due to reduced costs and improved product structure [2][3]. Financial Performance Summary - For Q3 2024, the company reported revenue of 13.28 billion, a year-on-year increase of 2.23%, and a net profit of 2.26 billion, reflecting a 32.90% increase [1][2]. - The gross margin improved significantly to 38.82%, up by 4.95 percentage points year-on-year, driven by lower material costs and optimized product structure [2][4]. - The company’s net profit for 2024 is expected to be 7.55 billion, with a projected P/E ratio of 24X for 2024 [3][4]. Regional Performance - The Eastern region showed rapid growth with a revenue increase of 8.57% year-on-year, while the Central and Western regions experienced declines [2]. - The number of distributors increased by 285 to a total of 2395, indicating stable growth in the distribution network [2]. Revenue Breakdown - The revenue from various product lines in Q3 2024 was as follows: soy sauce at 7.41 billion, chicken essence at 1.81 billion, cooking oil at 1.30 billion, and other income at 1.47 billion [1][2].