Juewei Food (SH:603517) Haitong Securities·2024-10-27 06:45Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The report highlights that the company's revenue remains under pressure, but profit margins are showing significant improvement [5] - The company achieved a net profit of 4.38 billion yuan in the first three quarters of 2024, a year-on-year increase of 12.53% [5] - The report anticipates a gradual recovery in consumption, which may accelerate the company's growth [5] Summary by Sections Financial Performance - In Q3 2024, the company's revenue was 16.75 billion yuan, a year-on-year decrease of 13.29%, while the net profit was 1.43 billion yuan, down 3.33% year-on-year [5] - The operating cash flow for the company was 2.06 billion yuan, a significant increase of 1622.2% year-on-year, attributed to reduced procurement volume and lower costs [5] - The gross profit margin for Q3 2024 was 31.12%, an increase of 5.35 percentage points year-on-year [5] Revenue Breakdown - In Q3 2024, revenue from packaged products increased by 152.62% year-on-year, while revenue from fresh goods decreased by 15.99% [5] - Revenue from different regions showed that North China experienced a year-on-year increase of 9.73%, while other regions like Southwest and Northwest saw declines [5] Profit Forecast and Valuation - The company is expected to achieve net profits of 5.79 billion yuan, 6.34 billion yuan, and 7.42 billion yuan for the years 2024 to 2026, respectively [5] - The report assigns a reasonable value range for the stock at 18.69 to 23.37 yuan per share, based on a PE ratio of 20-25 times for 2024 [5]