Three Squirrels(SZ:300783) Xinda Securities·2024-08-29 11:30Investment Rating - The investment rating for the company is "Buy" with the previous rating also being "Buy" [1]. Core Views - The company achieved revenue of 508 million yuan, net profit attributable to shareholders of 29 million yuan, and net profit excluding non-recurring items of 22.8 million yuan for the first half of 2024, representing year-on-year growth of 75.4%, 88.6%, and 211.8% respectively [1]. - The online channels continued to show high growth, validating the high-end cost-performance strategy, with significant revenue increases from platforms like Tmall, JD, and Douyin [1]. - Supply chain efficiency improvements have driven profitability upward, with gross margin and net profit margin showing positive year-on-year changes [1]. Financial Summary - Total revenue for 2022 was 7,293 million yuan, with a projected increase to 10,350 million yuan in 2024, reflecting a growth rate of 45.5% [2]. - Net profit attributable to shareholders is expected to rise from 129 million yuan in 2022 to 402 million yuan in 2024, indicating an 83.0% year-on-year growth [2]. - The company's EPS is projected to increase from 0.32 yuan in 2022 to 1.00 yuan in 2024 [2]. Profitability Metrics - The gross margin for 2024 is estimated to be 23.2%, slightly down from 26.7% in 2022, while the net asset return (ROE) is expected to improve from 5.5% in 2022 to 13.8% in 2024 [2]. - The P/E ratio is projected to decrease from 52.50 in 2022 to 16.89 in 2024, indicating a more favorable valuation as earnings grow [2]. Future Outlook - The high-end cost-performance strategy is expected to enhance product competitiveness, with online penetration likely to continue increasing [1]. - The company is positioned to benefit from changes in supply-demand dynamics in the retail sector, with significant potential for growth in offline distribution channels [1].