Investment Rating - The report maintains a "Hold" rating for the company [1]. Core Insights - The company demonstrated resilient performance with a revenue of 580 million yuan for the first three quarters of 2024, reflecting a year-on-year increase of 3.6%. The net profit attributable to shareholders reached 140 million yuan, up 11.9% year-on-year [1][2]. - The overall gross margin stabilized at 59.3% for the first three quarters, showing a year-on-year increase of 1.4 percentage points [2]. - The company's focus on product optimization and brand strength continues to drive growth, particularly in its star products, which have maintained double-digit growth [3][4]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 200 million yuan, a year-on-year increase of 0.6%, and a net profit of 48.04 million yuan, up 13.6% year-on-year [1][2]. - The gross margin for Q3 was reported at 59.1%, a decrease of 1.1 percentage points year-on-year, while the net margin improved to 24.2%, an increase of 2.8 percentage points year-on-year [2]. - The company’s total expenses for the first three quarters were 34% of revenue, with a notable decrease in sales expenses due to reduced advertising costs [2]. Product and Market Strategy - The lens business generated 170 million yuan in revenue during Q3, marking a 3.9% year-on-year increase, contributing 84.3% to total revenue [3]. - The introduction of the "Light Control Pro 2.0" series has enhanced product quality, leading to a 34.2% year-on-year increase in sales for the "Light Control Pro" series [3]. - The company anticipates steady growth in its near-sightedness prevention product line, with projected sales growth rates of 5%, 40%, and 30% for 2024-2026 [8]. Earnings Forecast and Valuation - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.87 yuan, 1.05 yuan, and 1.23 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 31x, 25x, and 22x [4][10]. - The report emphasizes the continuous optimization of the product structure and enhancement of brand power as key factors supporting the "Hold" rating [4].
明月镜片：2024年三季报点评：业绩保持韧性，毛利率回稳