Aspire Biopharma faces potential Nasdaq delisting after compliance shortfall
Investing.com - Goldman Sachs downgraded Jonjee Hi-Tech (SS:600872) stock rating from Neutral to Sell and lowered its price target to RMB14.60 from RMB15.20, citing weaker growth prospects and competitive pressures.
The downgrade reflects ongoing challenges with Jonjee’s channel reform efforts, which began in early 2024 but have yet to yield positive sales growth. In the second quarter of 2025, Jonjee reached 2,799 distributors, but sales per distributor fell 21% year-over-year, marking the fourth consecutive quarter of deterioration since Q2 2024.
Goldman Sachs highlighted the competitive threat from Haitian, which continues to gain market share through strong channel execution and product development. The firm estimates Haitian will achieve approximately 7-8% year-over-year sales growth in Q3 2025 and full-year 2025, while projecting Jonjee will face 10% sales decline and 16% net profit decrease in the same periods.
Despite raw material cost tailwinds and improved product mix with soy sauce sales growing 6% year-over-year in Q2 2025, Goldman Sachs expects Jonjee’s earnings to face further pressure. The firm forecasts Jonjee’s net profit will decrease by approximately 28% year-over-year in Q3 2025 and 35% for full-year 2025.
The company’s selling expenses increased 16% year-over-year in Q2 2025, likely due to increased channel promotions and advertising, even as topline growth remained under pressure, further contributing to Goldman Sachs’ pessimistic outlook on the stock.
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