TongQingLou Catering (SH:605108)2024-10-29 03:13Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [4]. Core Insights - The company demonstrated resilience in same-store operations while accelerating the cultivation of new stores to build momentum [4]. - In Q3 2024, the company reported revenue of 5.94 billion yuan, a year-on-year decrease of 1.23%, and a net profit of 2.45 million yuan, down 95.74% year-on-year [4]. - The company is expanding its business model by integrating dining, banquet, and hotel services, with a focus on the "Fumao" hotel brand, which has a unique competitive advantage [4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 18.65 billion yuan, a year-on-year increase of 10.81%, but a net profit of 830 million yuan, down 58.92% year-on-year [4]. - The gross profit margin for Q1-Q3 2024 was 20.23%, a decrease of 4.7 percentage points year-on-year, while the gross profit margin for Q3 2024 was 17.37%, down 7.91 percentage points year-on-year [4]. - The company plans to open 10 "Fumao" hotels by the end of 2024, aiming for significant growth in operational scale and performance by 2025 [4]. Future Projections - The company expects net profits of 1.48 billion yuan, 2.85 billion yuan, and 4.09 billion yuan for 2024, 2025, and 2026 respectively, reflecting adjustments due to new store ramp-up and initial investment impacts [4]. - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 38, 20, and 14 respectively, with a target valuation of 24 times PE for 2025, indicating a potential upside of 22% [4].