YIWU CCC(600415) 华创证券·2024-10-29 17:08Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 12.5 CNY per share, compared to the current price of 10.66 CNY [1][3]. Core Insights - The company's performance in Q3 exceeded expectations, with a revenue of 38.5 billion CNY, representing a year-on-year growth of 40.2%. The net profit attributable to shareholders reached 8.8 billion CNY, a significant increase of 176.7% [1][2]. - The main business profit for Q3 was approximately 9.9 billion CNY, showing a year-on-year increase of over 108%. This growth is attributed to a thriving market environment in Yiwu, increased user willingness to pay on the Chinagoods platform, and a significant rise in cross-border payment transactions through Yiwu Pay [2][3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 106.1 billion CNY, a year-on-year increase of 34.3%, and a net profit of 23.3 billion CNY, growing by 0.5% [1]. - The gross margin for the main business in Q3 was 30.1%, an increase of 9.5 percentage points year-on-year. The sales expense ratio was 1.0%, down by 0.06 percentage points, and the management expense ratio was 3.1%, down by 1.09 percentage points [3]. - The company has adjusted its net profit forecasts for 2024-2026 to 30.2 billion CNY, 34.4 billion CNY, and 49.8 billion CNY, respectively, reflecting a slight upward revision [3]. Market Context - The overall market for Yiwu's import and export trade remains robust, with a total value of 4998.8 billion CNY in the first three quarters, marking a year-on-year growth of 16.6% [2]. - The Chinagoods platform's gross merchandise volume (GMV) exceeded 608 billion CNY, with a year-on-year growth of over 16%, indicating strong user engagement and platform conversion rates [2].