JINHUI(603919) Guotai Junan Securities·2024-04-21 05:32Investment Rating - Maintains a "Buy" rating with a target price of 28.70 CNY [11][16] Core Views - The company's revenue growth momentum continues, with strong performance in high-end products driving structural upgrades [16] - The company's leading position in the local market is further solidified, with significant growth in products priced above 300 CNY [16] - The company's continuous investment in consumer engagement and brand building is expected to enhance brand recognition and market share [16] Financial Performance - 24Q1 revenue reached 10.76 billion CNY, a year-on-year increase of 20.41% [16] - 24Q1 net profit was 2.21 billion CNY, a year-on-year increase of 21.58% [16] - 24Q1 gross margin increased by 0.4 percentage points to 65.4% [16] - 24Q1 net profit margin increased by 0.2 percentage points to 20.6% [16] Revenue and Profit Trends - Revenue growth rates for 2022A, 2023A, 2024E, 2025E, and 2026E are 12%, 27%, 22%, 21%, and 19% respectively [16] - EBIT growth rates for the same periods are -26%, 26%, 32%, 28%, and 27% respectively [16] - Net profit growth rates are -14%, 17%, 26%, 27%, and 27% respectively [16] Profitability and Valuation Metrics - Operating profit margins for 2022A, 2023A, 2024E, 2025E, and 2026E are 14.0%, 13.9%, 15.0%, 15.9%, and 17.0% respectively [16] - ROE for the same periods are 8.9%, 9.9%, 11.8%, 14.1%, and 16.5% respectively [16] - ROIC for the same periods are 8.1%, 9.0%, 11.2%, 13.5%, and 15.9% respectively [16] - EV/EBITDA for the same periods are 32.27, 24.01, 14.20, 11.65, and 9.20 respectively [16] Market Performance - The stock's absolute price return over the past 12 months is -23% [16] - The stock's relative price return compared to the index over the past 12 months is -14% [16] - The stock's 52-week price range is 18.00-30.11 CNY [17] Product Structure and Market Strategy - Products priced above 300 CNY saw an 86.5% year-on-year increase in revenue, while products priced between 100-300 CNY saw a 24.1% increase [16] - The company is focusing on strengthening its presence in the local market and expanding into surrounding regions, with expected acceleration in sales outside the province [16] Capital Structure and Cash Flow - The company's net debt to equity ratio is -37.80% [16] - Free cash flow for 2022A, 2023A, 2024E, 2025E, and 2026E are 373, 370, 510, 704, and 704 million CNY respectively [11]