YIWU CCC(600415) GF SECURITIES·2024-10-17 01:37Investment Rating - The investment rating for the company is "Buy" with a target price of 11.99 CNY per share [1]. Core Views - The company reported a revenue of 10.61 billion CNY for the first three quarters of 2024, representing a year-on-year growth of 34.3%. The net profit attributable to shareholders reached 2.33 billion CNY, up 40.2% year-on-year, with a net profit margin of 22.9% [1]. - The company's main business profit for Q3 2024 was approximately 994 million CNY, showing a significant year-on-year increase of over 108%, driven by rental income growth from the chinagoods platform and the steady progress of the global digital trade center [1]. - The company is expected to achieve total revenues of 14.61 billion CNY, 16.97 billion CNY, and 19.68 billion CNY for 2024, 2025, and 2026 respectively, with corresponding net profits of 2.99 billion CNY, 3.34 billion CNY, and 4.14 billion CNY [1]. Financial Summary - For Q3 2024, the company achieved a gross profit margin of 30.1%, an increase of 11.30 percentage points year-on-year. The sales expense ratio decreased by 1.09 percentage points, while the R&D expense ratio was 1.0%, up 0.2 percentage points year-on-year [1]. - The company's operating income for 2022 was 7.62 billion CNY, which increased to 11.3 billion CNY in 2023, reflecting a growth rate of 48.3%. The projected growth rates for the next three years are 29.3%, 16.1%, and 16.0% respectively [2][3]. - The company's net profit for 2023 was 2.68 billion CNY, with an expected growth rate of 11.7% for 2024 and 11.8% for 2025 [2][3]. Profitability and Valuation - The company is projected to have an EPS of 0.55 CNY in 2024, increasing to 0.61 CNY in 2025 and 0.75 CNY in 2026. The P/E ratio is expected to be 21.17 in 2024, decreasing to 15.29 by 2026 [2][3]. - The report suggests a reasonable valuation of 11.99 CNY per share based on comparable company valuations, supporting the "Buy" rating [1].