JINHUI(603919)2024-10-28 15:02Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 21.84 and a sector rating of "Outperform" [1]. Core Insights - The company reported a revenue of RMB 2.33 billion for the first three quarters of 2024, representing a year-on-year increase of 15.3%, and a net profit of RMB 333 million, up 22.2% year-on-year. In Q3 2024, revenue and net profit were RMB 574 million and RMB 38 million, respectively, showing increases of 15.8% and 108.8% year-on-year [3][5]. - The company's product structure is continuously upgrading, with a significant increase in the revenue contribution from products priced above RMB 300, which reached RMB 470 million, a 43.8% increase year-on-year [3]. - The company has optimized its expense ratio, leading to improved profit margins, with a net profit margin of 6.6% in Q3 2024, an increase of 3.0 percentage points year-on-year [3][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of RMB 2.33 billion, a 15.3% increase year-on-year, and a net profit of RMB 333 million, up 22.2% year-on-year. Q3 2024 revenue was RMB 574 million, with a net profit of RMB 38 million, reflecting a 15.8% and 108.8% increase year-on-year, respectively [3][5]. - The gross profit margin for Q3 2024 was 61.1%, down 1.5 percentage points year-on-year, while the net profit margin improved to 6.6%, up 3.0 percentage points year-on-year [5]. Product and Market Development - The company has seen a robust performance in its product segments, particularly in the RMB 300 and above price range, which accounted for 20.8% of total revenue, an increase of 4.3 percentage points year-on-year [3]. - The company is expanding its presence in the provincial markets, with revenue from outside the province reaching RMB 550 million, a 15.7% increase year-on-year, maintaining a stable income contribution [3]. Expense Management - The company has effectively reduced its expense ratios, with the selling expense ratio and management expense ratio decreasing to 24.1% and 13.1%, respectively, in Q3 2024 [3][5]. - The total liabilities stood at RMB 1.08 billion, with a stable contract liability of RMB 480 million, indicating good cash flow management [6].