Canlon(SZ:300715) EBSCN·2024-10-29 00:11Investment Rating - The report adjusts the investment rating for the company to "Accumulate" [3] Core Views - The company continues to face operational pressures, but there is an expectation for marginal improvement in the future [1] - The company's revenue and net profit have declined year-on-year, with a significant drop in Q3 performance [1][2] - The gross margin has improved slightly, but rising expense ratios are putting pressure on profitability [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 1.81 billion, a year-on-year decrease of 12.9%, and a net profit attributable to the parent company of -30 million [1] - In Q3 alone, revenue was 590 million, down 23.5% year-on-year, with a net profit of -40 million [1] - The gross margin for Q1-Q3 was 23.5%, a slight decrease of 0.6 percentage points year-on-year, while the expense ratio increased by 5.0 percentage points to 23.2% [2] - The Q3 gross margin improved to 25.4%, primarily due to a higher proportion of high-margin products and cost reductions [2] Profit Forecast and Valuation - The profit forecast for the company has been revised downwards for 2024-2026, with net profit estimates of -22 million, 87 million, and 111 million respectively [3] - The previous estimates were significantly higher, indicating a downward adjustment of -112%, -57%, and -50% for the respective years [3]