JINHUI(603919) Guolian Securities·2024-10-27 08:13Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is expected to achieve revenue of 2.912 billion, 3.233 billion, and 3.556 billion yuan for 2024-2026, with year-on-year growth rates of 14.31%, 11.02%, and 10.00% respectively. The net profit attributable to the parent company is projected to be 398 million, 447 million, and 498 million yuan for the same period, with growth rates of 21.03%, 12.32%, and 11.37% respectively. The three-year CAGR is estimated at 14.82%, with corresponding PE valuations of 26, 23, and 21X for 2024-2026 [2][6] Financial Performance - In the first three quarters of 2024, the company achieved revenue of 2.328 billion yuan, a year-on-year increase of 15.31%, and a net profit of 333 million yuan, up 22.17% year-on-year. In Q3 2024, revenue reached 574 million yuan, growing by 15.77% year-on-year, while net profit surged by 108.84% to 38 million yuan [6][7] - The company’s gross margin in Q3 2024 was 61.13%, a decrease of 1.52 percentage points year-on-year, attributed to increased market competition. However, the net profit margin improved to 6.63%, an increase of 2.95 percentage points year-on-year, due to a decline in expense ratios [6][7] Product and Market Dynamics - The company’s high-end products continued to show strong growth, with Q3 2024 revenue from products priced above 300 yuan increasing by 42.06% year-on-year. The revenue from provincial markets is accelerating, with Q3 2024 revenue from provincial and non-provincial markets at 375 million and 171 million yuan, respectively, reflecting year-on-year growth of 4.40% and 37.91% [6][7] Future Outlook - The company is expected to maintain its structural upgrade trend, with steady performance in its base market and an anticipated gradual increase in market share within the province [2][6]