aiyingshi(SH:603214) GOLDEN SUN SECURITIES·2024-10-25 07:10Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company has shown steady performance with a slight increase in revenue and net profit for the first three quarters of 2024, achieving a revenue of 2.468 billion yuan, up 1.95% year-on-year, and a net profit of 48 million yuan, up 2.04% year-on-year [1] - The company continues to optimize its offline store adjustments while maintaining growth in the milk powder category, with a total of 463 stores as of the end of the reporting period [1] - The company is expected to expand its offline store layout and enhance operational efficiency while actively innovating to drive brand value [1] Financial Performance Summary - For Q3 2024, the company reported a revenue of 774 million yuan, a year-on-year increase of 2.56%, and a net profit of 5 million yuan, a year-on-year increase of 0.78% [1] - The gross margin for Q3 2024 decreased by 1.07 percentage points to 25.22% due to a decline in gross margins from both store sales and e-commerce [1] - The company’s operating expenses have been optimized, with a total expense ratio decreasing by 0.48 percentage points year-on-year to 25.78% [1] Revenue and Profit Forecast - The company’s projected revenues for 2024, 2025, and 2026 are 3.438 billion yuan, 3.694 billion yuan, and 3.910 billion yuan respectively, with net profits expected to be 108 million yuan, 136 million yuan, and 146 million yuan respectively [2][10] - The earnings per share (EPS) are forecasted to be 0.78 yuan, 0.98 yuan, and 1.05 yuan for the years 2024, 2025, and 2026 respectively [2][10] Market Position and Strategy - The company is recognized as a leading mother and baby chain with strong brand reputation and product mix adjustment capabilities [1] - Following the acquisition of Beibeixiong in 2021, the company has been adjusting its store and supply chain to enhance its leading position in the market [1]