JINHUI(603919) Tai Ping Yang·2024-04-22 01:30Investment Rating - The report maintains an "Accumulate" rating with a target price of 21.87, compared to the last closing price of 19.33 [1][6]. Core Insights - The company reported a strong performance in Q1 2024, with revenue reaching 1.076 billion, a year-on-year increase of 20.41%, and a net profit of 221 million, up 21.58% year-on-year. The product structure continues to optimize, with significant growth in high-end products [9][20]. - The company aims for a revenue target of 3 billion and a profit of 400 million for 2024, supported by a robust cash flow and a solid contract liability base [9][20]. Financial Forecasts - Revenue projections for 2023A, 2024E, 2025E, and 2026E are 2,548 million, 3,058 million, 3,590 million, and 4,163 million respectively, with growth rates of 26.64%, 20.03%, 17.39%, and 15.98% [2][19]. - Net profit forecasts for the same years are 329 million, 412 million, 513 million, and 622 million, with growth rates of 17.35%, 25.27%, 24.52%, and 21.17% [2][19]. Earnings Per Share and Valuation - The diluted earnings per share (EPS) are projected to be 0.65, 0.81, 1.01, and 1.23 for 2023A, 2024E, 2025E, and 2026E respectively [3][19]. - The price-to-earnings (PE) ratios corresponding to these EPS figures are 37.88, 23.80, 19.11, and 15.77 [3][19]. Market Performance - The company has seen a stable increase in market share, particularly in the domestic market, with revenue from provincial and external markets reaching 848 million and 218 million respectively, reflecting year-on-year growth of 22.6% and 13.2% [9][20]. - The company has increased its number of distributors, with 283 in the domestic market and 609 in external markets, showing a net increase of 11 and 17 respectively [9][20]. Strategic Focus - The company plans to continue optimizing its product structure and enhancing its operations with major clients, focusing on high-end products like Jin Hui 18 and Jin Hui 28 [9][20]. - The strategic approach includes a nationwide layout with a focus on the northwest region, aiming for precise market operations and solidifying its base in the domestic market [9][20].