JINHUI(603919) Guoxin Securities·2024-10-28 02:42Investment Rating - The investment rating for the company is "Outperform the Market" [3][8] Core Views - In Q3 2024, the company achieved a revenue growth of 15.8% year-on-year, with a net profit growth of 108.8%. For the first three quarters of 2024, total revenue reached 2.328 billion yuan, up 15.3% year-on-year, and net profit attributable to shareholders was 333 million yuan, up 22.2% year-on-year [1][4] - The company is focusing on product structure upgrades, with a notable increase in the revenue share of products priced above 100 yuan, which rose by 6.94 percentage points to 85.9% [1][4] - The company is experiencing higher growth rates in its out-of-province markets, particularly in Shaanxi and Ningxia, indicating successful market transformation efforts [1][4] Financial Performance - For Q3 2024, the company's total revenue was 574 million yuan, a year-on-year increase of 15.77%, while net profit was 38 million yuan, up 108.84% year-on-year [1][4] - The gross profit margin decreased by 1.52 percentage points to 61.1% due to increased market competition and slight rises in procurement costs [1][4] - The company reported a decrease in sales expense ratio by 3.19 percentage points and a management expense ratio decrease of 1.81 percentage points in Q3 2024 [5] Regional Performance - Revenue growth in Q3 2024 was 4.4% in the province and 37.9% out of the province, with significant contributions from Shaanxi and Ningxia [1][4] - The company is implementing a "one county, one policy" strategy to enhance market penetration and optimize channel structures [1][4] Future Projections - The company has revised its revenue and net profit forecasts downward, expecting revenues of 2.963 billion yuan, 3.423 billion yuan, and 3.935 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 16.3%, 15.5%, and 15.0% [5][6] - The projected net profit for 2024, 2025, and 2026 is 388 million yuan, 459 million yuan, and 542 million yuan, with year-on-year growth rates of 18.1%, 18.3%, and 18.0% [5][6]