JINHUI(SH:603919) Southwest Securities·2024-10-29 02:40Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company has shown strong momentum in high-end products, with a steady national expansion strategy. The third quarter of 2024 saw a revenue of 5.7 billion yuan, a year-on-year increase of 15.8%, and a net profit of 0.38 billion yuan, up 108.8% year-on-year, aligning with market expectations [1]. - The company is experiencing significant growth in products priced above 300 yuan, with a revenue increase of 42.1% in this segment during Q3 2024. The expansion in markets outside the province is accelerating, with a 37.9% year-on-year growth in revenue from these regions [1]. - The gross margin for Q3 2024 decreased by 1.5 percentage points to 61.1%, primarily due to increased promotional activities. However, the net profit margin improved by 0.8 percentage points to 14.3%, driven by optimized expenses [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 2.33 billion yuan, a 15.3% increase year-on-year, and a net profit of 0.33 billion yuan, up 22.2% year-on-year. The Q3 revenue and net profit figures were 0.57 billion yuan and 0.038 billion yuan, respectively [1][5]. - The company forecasts revenues of 25.48 billion yuan, 30.08 billion yuan, 35.14 billion yuan, and 40.51 billion yuan for 2024 to 2026, with corresponding growth rates of 18.06%, 16.84%, and 15.28% [3][5]. Product and Market Analysis - In Q3 2024, the revenue breakdown by product category showed that products priced above 300 yuan generated 1.6 billion yuan, while those priced between 100-300 yuan and below 100 yuan generated 3.1 billion yuan and 0.8 billion yuan, respectively [1]. - The company is focusing on large customer operations and user engagement, strengthening its market presence in Gansu while expanding into the Northwest and gradually developing markets in East China and the North [1]. Cost and Profitability - The sales, management, and R&D expense ratios for Q3 2024 were 24.1%, 13.1%, and 6.9%, respectively, reflecting a decrease in these ratios compared to the previous year, indicating improved cost management [1]. - The company’s net profit is projected to grow to 4.07 billion yuan and 4.90 billion yuan in 2025 and 2026, with growth rates of 23.66% and 20.42%, respectively [3][5].