Bank of China Securities: JONJEE's market share is expected to achieve rapid growth, maintaining a "Buy" rating

According to a research report by Bank of China Securities, JONJEE is expected to achieve a net profit attributable to the parent company of approximately 679 million to 1.018 billion yuan in 2024, representing a decrease of about 40%-60%. Looking at a longer dimension, the performance in the second quarter dragged down the overall annual results, mainly due to price reform in the South China market, the company's home base. However, due to the overall weak demand in the industry, the terminal prices did not meet the company's expectations, resulting in a significant decline in quarterly revenue. In 3Q24, the company raised prices for some Chubang soy sauce and chicken essence nationwide, which increased revenue. The revenue of Meiwoxian in 3Q24 improved sequentially, with a year-on-year increase of 2.7%. Considering the current consumption environment, the effectiveness of product price increases still needs to be observed. Coupled with intense competition in the seasoning industry, it is judged that the short-term revenue of soy sauce products in the fourth quarter will be under pressure, and the growth rate may be lower than that of edible oil and chicken essence products. In 2024, the company will continue to refine its product pricing control and cost reform in collaboration with channels. However, as various mechanisms are gradually streamlined, coupled with the strong brand influence of the Chubang brand, after addressing shortcomings, market share is expected to achieve rapid growth. The company maintains an "overweight" rating