DEHUA TB(SZ:002043) Minsheng Securities·2024-10-25 08:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 11.82 yuan and projected PE ratios of 18x, 13x, and 11x for the years 2024, 2025, and 2026 respectively [1][3]. Core Views - The company reported a revenue of 6.464 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 12.79%, and a net profit attributable to shareholders of 482 million yuan, up 5.55% year-on-year [1]. - The revenue for Q3 2024 was 2.556 billion yuan, showing a year-on-year growth of 3.56%, while the net profit for the same period surged by 41.50% to 238 million yuan [1]. - The company has successfully implemented multi-channel sales strategies, particularly in rural areas, which have contributed to its revenue growth despite a general decline in the retail sector for building materials [1]. - Recent real estate policy changes and strong sales during the "Eleventh" holiday period have boosted confidence in the industry, which is expected to stabilize demand for home renovations [1]. - The company has effectively controlled costs, with a notable reduction in management expenses by 18.63% year-on-year in Q3 2024 [1]. - The cash flow remains healthy, with a net operating cash flow of 420 million yuan for the first three quarters of 2024, despite a 52% year-on-year decline [1]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a gross margin of 17.07%, a slight increase of 0.21 percentage points year-on-year, and a net margin of 9.53%, up 2.42 percentage points year-on-year [1]. - The report forecasts net profits of 551 million yuan, 776 million yuan, and 936 million yuan for 2024, 2025, and 2026 respectively, with corresponding growth rates of -20.1%, 40.8%, and 20.7% [2][4]. Cost Management - The company has maintained a focus on cost control, with sales, management, R&D, and financial expense ratios for Q3 2024 at 3.42%, 2.20%, 0.68%, and -0.34% respectively [1]. - The management expenses decreased by 12.86 million yuan year-on-year, while financial expenses also saw a reduction due to increased interest income and decreased interest expenses [1]. Cash Flow and Investments - The company reported a net cash flow from operating activities of 420 million yuan for the first three quarters of 2024, despite a significant year-on-year decline [1]. - The report highlights a healthy cash position, with a decrease in monetary funds of 677 million yuan since the beginning of the year, primarily due to dividends, fixed asset purchases, and share buybacks [1].