Buydeem Group(300824) 国投证券·2024-10-25 02:23Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 10.26 CNY for the next 12 months [4][2]. Core Views - The company is expected to benefit from domestic consumption upgrades as it optimizes its product structure and expands its categories, pushing its own brand overseas and expanding user touchpoints across all channels [2]. - The company reported a revenue of 5.1 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 7.2%, and a net profit attributable to shareholders of 0.4 billion CNY, up 25.7% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 1.8 billion CNY, a year-on-year increase of 22.0%, while the net profit attributable to shareholders was 6.964 million CNY, down 52.7% year-on-year [1]. Summary by Sections Financial Performance - The company's domestic revenue in Q3 increased by 19.1% year-on-year, driven by enhanced marketing efforts and government subsidies for appliance upgrades [1]. - The overseas revenue in Q3 grew by 26.4%, with overseas brand business revenue increasing by 172.0% and OEM business revenue by 7.9% [1]. - The net profit margin in Q3 was 3.8%, down 6.0 percentage points year-on-year, primarily due to increased marketing expenses and a decrease in gross margin by 1.3 percentage points [1]. Cash Flow and Working Capital - The operating cash flow for Q3 was 0.2 billion CNY, a decrease of 28.9% year-on-year, attributed to increased production and inventory costs [1]. - The accounts receivable balance increased by 19.9% year-on-year, reflecting a higher proportion of revenue from the distribution model for its own brand [1]. Earnings Forecast - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.15 CNY, 0.21 CNY, and 0.26 CNY respectively [2][4]. - The company is anticipated to maintain a dynamic price-to-earnings (P/E) ratio of 50 times for 2025 [2].