UE(603600) 中国银河·2024-10-28 03:16Investment Rating - The report maintains a "Recommend" rating for the company [1][4] Core Views - The company reported strong performance in Q3 2024, with revenue reaching RMB 3.39 billion, a YoY increase of 35.58%, and net profit attributable to shareholders of RMB 225 million, up 6.46% YoY [1] - Q3 2024 single-quarter revenue was RMB 1.338 billion, a YoY increase of 38.79%, with net profit attributable to shareholders of RMB 98 million, up 42.29% YoY [1] - The company's gross margin for the reporting period was 22.68%, a slight decrease of 0.39 pct YoY, while the expense ratio increased by 1.3 pct YoY to 14.85% [1] - The company is advancing its export business with new clients and channels, and is accelerating overseas production capacity construction, including a new Vietnam production base and a Romania base that started production in H1 2023 [1] - Domestically, the company launched a new product, Flow 360, which achieved sales of 3,500 units in 25 days and 10,000 units in 60 days, while expanding its online and offline sales channels [1] Financial Performance Summary - The company's revenue for 2024E is projected to be RMB 4.783 billion, with a YoY growth of 35.17%, and net profit attributable to shareholders of RMB 325.19 million, up 9.17% YoY [3] - For 2025E, revenue is expected to reach RMB 5.722 billion, a YoY increase of 19.64%, with net profit attributable to shareholders of RMB 405.98 million, up 24.84% YoY [3] - The company's EPS for 2024E, 2025E, and 2026E is forecasted to be RMB 0.98, RMB 1.23, and RMB 1.48, respectively, with corresponding P/E ratios of 12X, 10X, and 8X [1][3] Business Development - The company is focusing on the development of its adjustable desk business, which is expected to become its third-largest product category within the next five years [1] - The company is strengthening its domestic brand and channel construction, with a focus on e-commerce platforms such as Tmall, JD, and Douyin, as well as expanding offline retail channels [1]