ToLand(SZ:300855) Minsheng Securities·2024-10-20 08:00Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 25.49 CNY [1]. Core Insights - The company reported a revenue of 1.08 billion CNY for Q3 2024, a year-over-year increase of 1.3%, and a net profit attributable to shareholders of 258 million CNY, up 2.9% year-over-year, which is in line with market expectations [1]. - The gross margin improved year-over-year, while net profit was impacted by reduced investment income and increased operating expenses [1]. - The company is focusing on increasing R&D investments and has seen a significant improvement in operating cash flow, with a net cash flow from operating activities of 225 million CNY [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 348 million CNY, down 18.6% year-over-year, with a net profit of 66 million CNY [1]. - The gross margin for Q3 2024 was 35.8%, an increase of 0.2 percentage points year-over-year, while the net profit margin decreased due to higher expense ratios [1]. - The company’s R&D expenses increased, reflecting its commitment to innovation and product development [1]. Future Earnings Forecast - The company is expected to achieve net profits of 355 million CNY, 465 million CNY, and 609 million CNY for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 28x, 22x, and 17x [2]. - Revenue growth rates are projected at 7.5% for 2024, 20.6% for 2025, and 19.3% for 2026 [2]. - The gross margin is expected to improve to 39.77% by 2026, indicating a positive trend in profitability [2].