WEIXING(SZ:002003) GOLDEN SUN SECURITIES·2024-10-29 06:13Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance [4][5]. Core Insights - The company reported a 19.3% year-on-year revenue growth in Q3 2024, reaching 1.284 billion yuan, despite a slowdown in order growth compared to Q2 [1]. - The adjusted expense recognition method led to fluctuations in profit margins, with the net profit attributable to shareholders declining by 9.9% year-on-year to 208 million yuan [1]. - The company is expected to achieve a 27% growth in overall performance for 2024, driven by improved order intake and operational efficiency [4]. Revenue and Profitability Analysis - For the first three quarters of 2024, the company achieved a 23% year-on-year revenue increase to 3.58 billion yuan, with pre-tax profit and net profit growing by 21% and 17% respectively [2]. - The increase in sales and management expenses by 35% and 33% respectively was primarily due to changes in the bonus expense recognition method, which contributed an additional 50 million yuan in sales expenses [2]. Product Line Performance - All product lines are expected to show positive trends, with button and zipper revenues growing by 27% and 24% year-on-year in H1 2024 [3]. - The company has successfully expanded its production capacity, with button capacity reaching 5.9 billion pieces and zipper capacity at 440 million meters by the end of H1 2024 [3]. Future Outlook - The company anticipates a significant improvement in operational conditions compared to 2023, with a favorable inventory reduction among downstream brand customers [4]. - The adjusted net profit forecasts for 2024-2026 are set at 711 million, 821 million, and 955 million yuan respectively, with a corresponding PE ratio of 22 times for 2024 [4].