ORIENTAL YUHONG(002271) Minsheng Securities·2024-10-29 14:55Investment Rating - The report maintains a "Recommended" rating for the company, considering the improvements in operational quality due to channel transformation and cash flow performance [3][5]. Core Views - The company reported a significant decline in revenue and net profit for Q1-Q3 2024, with revenue at 21.699 billion yuan, down 14.44% year-on-year, and net profit at 1.277 billion yuan, down 45.73% year-on-year [1]. - The gross margin for Q3 2024 was 28.92%, showing a slight year-on-year decrease but stable compared to the previous quarter, attributed to a shift from direct sales to distribution channels [2]. - The company is focusing on channel restructuring, prioritizing retail and small B projects, which has led to an increase in their revenue share [3]. Financial Performance Summary - For Q3 2024, the company achieved a single-quarter revenue of 6.480 billion yuan, down 23.84% year-on-year, with a net profit of 334 million yuan, up 67.23% year-on-year [1]. - The operating cash flow showed significant improvement, with a net outflow of 492 million yuan for Q1-Q3 2024, a reduction of 4.268 billion yuan compared to the previous year [2]. - The company’s revenue forecast for 2024-2026 is adjusted to 15.02 billion yuan, 21.16 billion yuan, and 27.36 billion yuan for net profit, with corresponding PE ratios of 23, 16, and 12 times [3][4].