Kouzijiao(603589) 华创证券·2024-10-29 06:41Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 45 yuan [1]. Core Views - The company reported a revenue of 4.36 billion yuan for the first three quarters of 2024, a decrease of 1.9% year-on-year, and a net profit attributable to shareholders of 1.31 billion yuan, down 2.8% year-on-year. In Q3 alone, revenue was 1.20 billion yuan, down 22.0%, and net profit was 360 million yuan, down 27.7% [1]. - The company is focusing on inventory reduction and nurturing terminal sales, adjusting its growth expectations in response to industry pressures and increased competition [1]. - The introduction of the new product "Jian 8" is expected to enhance market acceptance and contribute to sales growth, with a focus on improving channel management and relationships [1]. Financial Summary - Total revenue for 2023 is projected at 5.96 billion yuan, with a year-on-year growth rate of 16.1%. However, revenue is expected to decline by 8.2% in 2024, followed by further declines in 2025 and 2026 [9]. - The net profit attributable to shareholders is forecasted to be 1.72 billion yuan in 2023, with a decline of 10.9% in 2024, and further declines in the following years [9]. - Earnings per share (EPS) is expected to be 2.87 yuan in 2023, decreasing to 2.56 yuan in 2024, and further to 2.23 yuan in 2025 [9].