JINHUI(603919) 民生证券·2025-04-16 05:37Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 19.35 yuan [6]. Core Views - The company achieved a revenue of 1.108 billion yuan in Q1 2025, representing a year-on-year increase of 3.04%. The net profit attributable to shareholders was 234 million yuan, up 5.77% year-on-year [1]. - High-end products continue to show strong growth, with revenue from products priced above 300 yuan increasing by 28.14% year-on-year. The company is expanding its market presence in both domestic and regional markets [2]. - The company has effectively controlled costs, leading to improved profitability. The gross margin for Q1 2025 was 66.81%, an increase of 1.41 percentage points year-on-year [3]. - The company plans to achieve a revenue target of 3.28 billion yuan and a net profit of 408 million yuan for 2025, reflecting year-on-year growth of 8.56% and 5.11%, respectively [4]. Summary by Sections Financial Performance - In Q1 2025, the company reported a net cash flow from operating activities of 269 million yuan, a decrease of 21.56% year-on-year. The ending contract liabilities were 583 million yuan, down 7.65% [1][3]. - The company’s revenue from different product segments in Q1 2025 was 245 million yuan for products above 300 yuan, 630 million yuan for products priced between 100-300 yuan, and 221 million yuan for products below 100 yuan [2]. Market Strategy - The company is focusing on a national layout while deepening its presence in the northwest region, with significant growth in markets such as Gansu, Jiangsu, and Henan [2]. - The company has a total of 964 distributors, with a net increase of 3 in the domestic market and a net decrease of 40 in the external market as of Q1 2025 [2]. Profitability and Cost Control - The company’s selling expense ratio decreased to 16.81%, down 1.18 percentage points year-on-year, while the management expense ratio was 7.02%, down 0.90 percentage points [3]. - The net profit margin for Q1 2025 was 21.09%, an increase of 0.54 percentage points year-on-year [3]. Future Outlook - The company forecasts revenues of 3.289 billion yuan for 2025, with a projected growth rate of 8.8% [5]. - The expected earnings per share for 2025 is 0.81 yuan, with a price-to-earnings ratio of 24 [5].