Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company reported a revenue of 5.73 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 38.5%. However, the net profit attributable to shareholders decreased by 3.1% to 280 million RMB [2]. - In Q3 2024, the company achieved a revenue of 2.01 billion RMB, up 34.5% year-on-year, with a net profit of 110 million RMB, reflecting a 5.4% increase year-on-year [2]. - The company is benefiting from successful new product launches and the expansion into new platforms such as Temu, Target, and TikTok Shop, which supports continued revenue growth [3]. - The gross margin for Q3 2024 improved sequentially, with a gross margin of 35.4% and a net margin of 5.3%, despite year-on-year declines due to high shipping costs [3]. - The company has established strong advantages in brand strength, product procurement, overseas warehousing logistics, and marketing operations, which support its growth sustainability [3]. Summary by Sections Performance Overview - Revenue for 2024 is projected to reach 8.03 billion RMB, with a growth rate of 32.15% [5]. - The net profit for 2024 is expected to be 380 million RMB, with a slight decline of 7.94% [5]. - The diluted earnings per share (EPS) for 2024 is estimated at 0.947 RMB [5]. Financial Metrics - The company's gross margin for the first three quarters of 2024 is 35.1%, while the net margin is 4.9% [3]. - The projected EPS for 2024-2026 is 0.95 RMB, 1.27 RMB, and 1.61 RMB, respectively, with corresponding price-to-earnings (PE) ratios of 20, 15, and 12 [3]. Market Position and Strategy - The company is focusing on deepening its existing product categories while expanding into new categories, leveraging its strong supply chain and operational capabilities [3]. - The expansion into offline channels is expected to further enhance long-term growth potential [3].
致欧科技：收入延续优异表现，盈利能力环比迎来改善