NHD(SZ:002264) Huaxin Securities·2024-10-25 15:00Investment Rating - The report assigns a "Buy" rating for the company, marking its initial coverage [2]. Core Insights - The company has shown stable revenue growth, with total revenue for Q1-Q3 2024 reaching 2.775 billion yuan, a year-on-year increase of 41.15%. However, profit performance has faced slight pressure, with net profit attributable to shareholders at 190 million yuan, up 19.55% year-on-year, but Q3 net profit decreased by 26.09% to 45 million yuan [1][2]. - The company has successfully transitioned to focus on online marketing services, completely divesting from traditional retail businesses. It has established a strong position in the e-commerce sector, particularly in the liquor category, collaborating with several well-known liquor brands [1][2]. Summary by Sections Financial Performance - For Q1-Q3 2024, total revenue was 2.775 billion yuan, with a year-on-year growth of 41.15%. The net profit attributable to shareholders was 190 million yuan, reflecting a 19.55% increase. In Q3 alone, total revenue was 687 million yuan, a 4.69% increase year-on-year, while net profit decreased to 45 million yuan, down 26.09% [1]. - Gross margin for Q1-Q3 2024 was 23.89%, with a slight year-on-year increase of 0.05 percentage points. In Q3, the gross margin improved to 25.23%, up 3.14 percentage points year-on-year [1]. Strategic Positioning - The company has completed its strategic transformation in 2023, focusing on internet marketing and providing integrated digital marketing solutions. It has built a robust online sales service system to meet the current needs of liquor enterprises [1][2]. - The company collaborates with major liquor brands to develop customized products, achieving significant sales in a short period. For instance, a product launched in collaboration with Xijiu generated over 10 million yuan in sales within a week [1]. Earnings Forecast - The company is projected to have earnings per share (EPS) of 0.37 yuan in 2024, 0.48 yuan in 2025, and 0.60 yuan in 2026. The corresponding price-to-earnings (P/E) ratios are expected to be 15, 11, and 9 times, respectively [2][4].