Xiamen Jihong Technology (002803) 长城证券·2025-04-23 10:10Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by more than 15% in the next six months [4][18]. Core Views - The company faced pressure on its performance in 2024, with revenue and net profit declining by 17.41% and 47.28% year-on-year, respectively, primarily due to economic conditions, inflation, and competitive market dynamics [2][9]. - However, the first quarter of 2025 showed a strong recovery, with revenue increasing by 11.55% and net profit rising by 38.21% year-on-year, driven by growth in cross-border e-commerce [2][3]. - The long-term development strategy focuses on AI-driven optimization of cross-border e-commerce, strengthening proprietary brand development, and expanding packaging business overseas [3][8]. Financial Summary - For 2024, the company reported revenue of 55.29 billion yuan and a net profit of 1.82 billion yuan [2]. - The projected financials for 2025 to 2027 indicate a recovery in revenue and profit, with expected net profits of 2.41 billion yuan, 3.01 billion yuan, and 3.68 billion yuan, respectively [9]. - The company's earnings per share (EPS) are projected to increase from 0.63 yuan in 2025 to 0.96 yuan in 2027 [9]. Strategic Initiatives - The company plans to enhance its AI capabilities to optimize the entire supply chain and improve operational efficiency [8]. - It aims to build proprietary brands to increase market competitiveness, with existing brands including SENADA BIKES and Veimia [8]. - A strategic partnership has been established for packaging business expansion in the Middle East and Africa, focusing on various packaging products [9].