Shanghai Jahwa(600315) 国元证券·2025-04-29 13:43Investment Rating - The report maintains a "Buy" rating for Shanghai Jahwa, indicating an expected stock price increase of over 15% compared to the benchmark index [4]. Core Views - The company reported a net profit of 2.17 billion yuan in Q1 2025, marking a turnaround from losses in the previous quarter, despite a 10.59% year-on-year decline in revenue [1][2]. - The company is undergoing strategic adjustments, including brand upgrades and channel optimization, which are expected to enhance profitability in the future [2][4]. Financial Performance Summary - In 2024, the company achieved revenue of 56.79 billion yuan, a year-on-year decrease of 13.93%, with a net profit of -8.33 billion yuan [1]. - For Q1 2025, revenue was 17.04 billion yuan, down 10.59% year-on-year, but the net profit showed a recovery to 2.17 billion yuan [1]. - The gross margin for Q1 2025 was 63.4%, with a net margin of 12.75% [1]. Business Segment Analysis - Personal care segment revenue in 2024 was 23.79 billion yuan, down 3.42% year-on-year, with a gross margin of 63.59% [2]. - The beauty segment saw a significant decline in revenue, down 29.81% to 10.50 billion yuan, but maintained a gross margin of 69.67% [2]. - The overseas business generated 14.15 billion yuan in revenue, a decrease of 11.43% year-on-year, with a gross margin of 48.32% [2]. Employee Stock Ownership Plan - The company announced an employee stock ownership plan aiming to raise up to 77.51 million yuan, with a share price set at 16.03 yuan per share [3]. - The plan includes participation from key executives and middle management, reflecting long-term confidence in the company's recovery [3]. Profit Forecast - The company is projected to achieve net profits of 3.42 billion yuan, 4.64 billion yuan, and 5.24 billion yuan for the years 2025, 2026, and 2027, respectively [4]. - The expected earnings per share (EPS) for the same years are 0.51 yuan, 0.69 yuan, and 0.78 yuan, with corresponding price-to-earnings ratios of 44x, 33x, and 29x [4].