Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's strong operational capabilities and favorable factors in customer orders and production have led to better-than-expected performance, prompting an upward revision of profit expectations [3] - The company has seen a significant increase in customer orders, with revenue growth driven by major clients and improved capacity utilization [4] - The profit forecast for 2024-2026 has been adjusted to EPS of 1.01, 1.16, and 1.34 yuan respectively, up from previous estimates of 0.95, 1.09, and 1.26 yuan [4] Summary by Sections Earnings Expectations - The company’s earnings expectations have been raised due to high demand from major clients and positive contributions from capacity utilization and raw material prices [4] - The target price has been increased to 20.93 yuan from 18.59 yuan, based on a PE ratio of 20.8x for 2024 [4] Revenue Growth - Revenue growth is notable, with Walmart's revenue growth slightly below the company's overall performance, while Pets at Home has shown significant recovery [4] - New customer orders from Costco are expanding, contributing to sequential revenue growth [4] Profitability - In Q3 2024, the company’s gross margin and net margin were 20.7% and 11.1% respectively, with a year-on-year decrease attributed to exchange rate impacts [4] - After adjusting for exchange losses, the net profit for Q3 2024 is expected to increase by over 45% year-on-year [4] Strategic Initiatives - The company is advancing its domestic and international dual circulation strategy, with ongoing expansion of overseas clients and development of its own brand in the domestic market [4] - The high demand in the pet industry and seasonal stocking by channel clients are expected to sustain order growth into Q4 2024 [4]
依依股份2024年三季报点评：大客户订单驱动业绩超预期