By-health(300146) Guoyuan Securities·2024-10-29 00:31Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Insights - The company reported a total revenue of 57.34 billion yuan for the first three quarters of 2024, representing a decline of 26.33% year-on-year. The net profit attributable to shareholders was 8.69 billion yuan, down 54.31% year-on-year [2][3]. - In Q3 2024, the company achieved total revenue of 11.20 billion yuan, a significant decrease of 48.76% year-on-year, with a net profit of -0.22 billion yuan, marking a decline of 106.30% [2][3]. - The revenue decline in Q3 was attributed to the transition of old and new products in the protein powder and Jianli Duo offline channels, as well as the company's proactive adjustment of less profitable products [3]. Revenue Breakdown - For the first three quarters of 2024, revenue from the main brand, Jianli Duo, Lifespace domestic, overseas LSG, and other brands were 31.94 billion yuan, 6.98 billion yuan, 2.71 billion yuan, 6.84 billion yuan, and 8.87 billion yuan, respectively, with year-on-year declines of -29.20%, -29.90%, -29.55%, -11.66%, and -20.65% [3]. - In Q3 2024, the revenue from these brands showed even steeper declines, with year-on-year changes of -54.43%, -62.53%, -41.78%, -27.21%, and -33.54% [3]. Profitability Analysis - The company's gross margin for the first three quarters of 2024 was 67.93%, down 1.73 percentage points year-on-year, while the net profit margin was 15.15%, down 9.28 percentage points year-on-year [4]. - In Q3 2024, the gross margin was 65.31%, a decrease of 2.64 percentage points year-on-year, and the net profit margin was -2.00%, down 18.27 percentage points year-on-year [4]. Financial Projections - The company is expected to achieve net profits of 7.44 billion yuan, 11.43 billion yuan, and 14.42 billion yuan for the years 2024, 2025, and 2026, respectively, with growth rates of -57.39%, 53.61%, and 26.17% [5]. - The corresponding price-to-earnings ratios (PE) for these years are projected to be 30, 19, and 15 times, respectively, with a market capitalization of 222 billion yuan [5].