Sichuan Teway Food (SH:603317) Southwest Securities·2024-10-29 03:00Investment Rating - The report maintains a "Buy" rating for Tianwei Foods (603317) [1] Core Views - The company's Q3 profitability has significantly improved due to cost optimization and declining expenses, with a notable increase in net profit by 64.8% year-on-year [1][3] - The company achieved a revenue of 2.36 billion yuan in the first three quarters, representing a year-on-year growth of 5.8%, and a net profit of 430 million yuan, up 35% year-on-year [1] - The report highlights strong growth in online sales and a recovery in offline sales, driven by seasonal demand [2][4] Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 900 million yuan, a year-on-year increase of 10.9%, and a net profit of 190 million yuan, up 64.8% [1] - The gross margin for the first three quarters was 39.3%, an increase of 2.4 percentage points year-on-year, while Q3 gross margin was 38.8%, up 0.8 percentage points [3] - The net profit margin in Q3 increased by 7.3 percentage points to 21.2% due to cost reductions and improved product mix [3] Product and Channel Development - The company has launched new products and is focusing on health-oriented offerings, with all C-end products free from preservatives [4] - Online sales grew by 55.4% year-on-year, while offline sales increased by 6%, indicating a strong recovery in the offline channel [2] - The company is enhancing its B-end business through strategic partnerships and acquisitions, which are expected to contribute significantly to revenue growth [4] Future Outlook - The report forecasts earnings per share (EPS) for 2024-2026 to be 0.55 yuan, 0.62 yuan, and 0.70 yuan, respectively, with corresponding dynamic price-to-earnings (PE) ratios of 25, 22, and 20 [4]