Buydeem Group(SZ:300824) Tianfeng Securities·2024-10-25 13:00Investment Rating - The investment rating for the company is "Accumulate" with a target price set at 8.82 CNY, maintaining the current rating [5]. Core Views - The company achieved a revenue of 506 million CNY in the first three quarters of 2024, representing a year-on-year increase of 7.19%, while the net profit attributable to the parent company was 39 million CNY, down 25.74% year-on-year [1]. - The growth of the company's own brand in both domestic and international sales is showing marginal improvement, with overseas business progressing smoothly [1]. - The company has increased its expenditure, which has put pressure on profit margins, with a gross margin of 47.36% and a net margin of 7.68% for the first three quarters of 2024, both showing declines compared to the previous year [2]. Financial Performance Summary - For the first three quarters of 2024, the company's revenue from its own brand and OEM/ODM business increased by 3% and 20% respectively, with domestic and international sales showing a year-on-year change of -2% and +67% [1]. - The gross margin for Q3 2024 was 44.56%, down 1.25 percentage points year-on-year, while the net margin was 3.78%, down 5.98 percentage points year-on-year [2]. - The company’s operating cash flow for the first three quarters of 2024 was 2.5 million CNY, a decrease of 68.32% year-on-year, influenced by the payment terms of its OEM/ODM and own brand distribution business [3]. Financial Forecast - The projected revenue for 2024 is 737.41 million CNY, with an expected growth rate of 10.84% [4]. - The net profit attributable to the parent company is forecasted to be 62.19 million CNY for 2024, reflecting a decrease of 12.85% compared to the previous year [4]. - The company’s dynamic valuation for 2024 is estimated at 46.28 times earnings [3].