Shanghai Jahwa(600315) 华西证券·2025-04-25 13:40Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is undergoing a painful adjustment period in 2024, with expectations for performance recovery in 2025 [2][7] - The company has implemented strategic adjustments in its domestic business, including reducing inventory and closing underperforming stores, which has led to a temporary decline in revenue [3] - The company is focusing on online transformation and enhancing operational efficiency through organizational restructuring [3][4] - A stock incentive plan has been introduced to boost employee confidence and align interests with future performance goals [6][7] Revenue Summary - In 2024, the company achieved revenue of 5.679 billion yuan, a year-on-year decrease of 13.93% [2][9] - For Q1 2025, revenue was 1.704 billion yuan, down 10.59% year-on-year [2] - Revenue by product category in 2024: Personal Care 2.379 billion yuan (-3.42%), Beauty 1.050 billion yuan (-29.81%), Innovation 0.830 billion yuan (-19.38%), Overseas 1.415 billion yuan (-11.43%) [4] Profit Summary - The company reported a net profit of -833 million yuan in 2024, a decline of 266.60% year-on-year [2][9] - In Q1 2025, the net profit was 217 million yuan, down 15.25% year-on-year [2] - The gross margin for Q1 2025 was 63.40%, with a net margin of 12.75% [5] Future Earnings Forecast - Revenue projections for 2025-2027 are 6.199 billion yuan, 6.763 billion yuan, and 7.315 billion yuan respectively [7][9] - Expected net profits for the same period are 363 million yuan, 458 million yuan, and 533 million yuan respectively [7][9] - The earnings per share (EPS) forecast for 2025-2027 is 0.54 yuan, 0.68 yuan, and 0.79 yuan respectively [7][9]