JINHUI(603919)2024-10-29 02:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on projected earnings per share (EPS) for 2024-2026 being 0.79, 0.94, and 1.10 yuan respectively, corresponding to price-to-earnings (P/E) ratios of 26, 22, and 18 times based on the closing price of 20.32 yuan on October 25, 2024 [2][4]. Core Insights - The company reported a revenue of 574 million yuan for Q3 2024, representing a year-on-year increase of 15.8%, and a net profit attributable to shareholders of 38 million yuan, up 109% year-on-year. For the first three quarters of 2024, revenue grew by 15.3% and net profit by 22.2% [1][2]. - The company is experiencing a short-term adjustment in its domestic market while showing promising results from its transformation efforts in the external market. Domestic revenue for Q3 was 375 million yuan, up 4.4% year-on-year, while external revenue reached 171 million yuan, up 37.9% year-on-year [1][2]. - The product structure is improving, with revenue from products priced above 300 yuan increasing by 42.1% year-on-year in Q3, while products priced below 100 yuan saw a decline of 24.3% year-on-year. The overall product structure is trending towards higher quality offerings [2][5]. Financial Performance Summary - The company forecasts a revenue of 3,000.57 million yuan for 2024, with a growth rate of 17.78%. The net profit is expected to reach 400.09 million yuan, reflecting a profit growth rate of 21.66% [4][12]. - The net profit margin for Q3 was 6.6%, an increase of 3 percentage points year-on-year, despite a slight decline in gross margin due to increased promotional expenses [5][12]. - The company’s total assets are projected to grow from 4,402.32 million yuan in 2023 to 5,584.77 million yuan by 2026, indicating a healthy growth trajectory [11][12].