BIYI(603215) Tianfeng Securities·2024-10-28 11:33Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within six months [6]. Core Views - The company has a strong order backlog, leading to significant revenue growth, with a reported revenue of 1.48 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 17.46% [1]. - However, net profit has decreased by 42.08% year-on-year to 102 million yuan, primarily due to increased labor costs and reduced foreign exchange gains [1][3]. - The company is actively expanding its overseas production capacity and diversifying its product range, which is expected to enhance revenue streams in the future [4]. Summary by Sections Revenue Performance - The company reported a revenue of 619 million yuan in Q3 2024, a year-on-year increase of 51.6%, driven by a robust order book and full production capacity [1][2]. - The average monthly production of air fryers has maintained at 1.1 million units since Q3, with coffee machines and new environmental appliances also contributing to sales [2]. Profitability Analysis - The gross margin for the first three quarters of 2024 was 16.17%, down 5.56 percentage points year-on-year, while the net margin was 6.64%, down 7.3 percentage points [3]. - In Q3 2024, the gross margin was 15.25%, a decline of 6.69 percentage points year-on-year, and the net margin was 5.18%, down 6.7 percentage points [3]. Cash Flow Situation - The company experienced negative net cash flow from operating activities of 35 million yuan for the first three quarters of 2024, compared to a positive 223 million yuan in the previous year [4]. - The increase in cash payments for goods and services, which rose by 21.65% year-on-year to 989 million yuan, contributed to the cash flow pressure [4]. Financial Forecast - The company is projected to achieve net profits of 140 million yuan, 170 million yuan, and 220 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding dynamic P/E ratios of 21.4x, 16.8x, and 13.6x [4][5].