ECOLOVO(SZ:301116) Guoxin Securities·2024-10-30 01:30Investment Rating - The report maintains an "Outperform the Market" rating for Yike Foods (301116.SZ) [1][3][13] Core Insights - The meat duck industry is experiencing a recovery, with Q3 net profit attributable to shareholders increasing by 128.68% year-on-year [1][4] - For the first three quarters of 2024, the company achieved operating revenue of 15.363 billion yuan, a decrease of 7.30% year-on-year, while net profit attributable to shareholders reached 141 million yuan, a significant increase of 2721.59% year-on-year [1][4] - The company is expected to benefit from the overall improvement in the profitability of the meat duck industry due to the decline in upstream feed raw material prices and the increase in downstream duck down by-products prices [1][4] Financial Performance Summary - In Q3 2024, the company reported operating revenue of 5.298 billion yuan, a decrease of 2.26% quarter-on-quarter and a decrease of 7.69% year-on-year [1][4] - The Q3 net profit attributable to shareholders was 24 million yuan, a decrease of 37.36% quarter-on-quarter but an increase of 128.68% year-on-year [1][4] - The gross profit margin for the first three quarters of 2024 was 4.89%, an increase of 2.12 percentage points year-on-year, while the net profit margin was 1.39%, an increase of 1.31 percentage points year-on-year [1][4][10] Expense Management - The sales expenses for the first three quarters of 2024 were 93 million yuan, an increase of 13.66% year-on-year, with a sales expense ratio of 0.61% [1][10] - Management expenses reached 261 million yuan, an increase of 16.77% year-on-year, with a management expense ratio of 1.70% [1][10] - Financial expenses remained stable at 51 million yuan, with a financial expense ratio of 0.33% [1][10] Cash Flow and Efficiency - The net operating cash flow for the first three quarters of 2024 was 987 million yuan, an increase of 151.18% year-on-year, representing 6.42% of operating revenue [1][12] - Inventory turnover days decreased to 18.23 days, a year-on-year decrease of 14.71%, while accounts receivable turnover days decreased to 5.76 days, a year-on-year decrease of 33.83% [1][12]