Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company reported a revenue of 3.88 billion yuan for the first nine months of 2024, a year-on-year increase of 1.9%, and a net profit attributable to shareholders of 520 million yuan, a year-on-year increase of 0.7%. In Q3 2024, the revenue was 1.25 billion yuan, a year-on-year decrease of 11.2%, and the net profit was 150 million yuan, a year-on-year decrease of 8.5% [1][2]. - The overall demand in the home furnishing industry has weakened, impacting retail revenue. The company is actively enhancing its revenue through provincial collaboration and live streaming at terminals, while also launching popular product bundles and incentivizing dealers to upgrade store formats to increase foot traffic and sales of high-end products [1][2]. - The company is continuously strengthening its e-commerce channel layout, maintaining growth on traditional platforms like Tmall and JD, while also focusing on new channels such as Douyin and Kuaishou. The e-commerce channel is expected to maintain high growth rates due to a low base, and the company plans to increase investment in e-commerce to improve conversion rates [1][2]. Financial Performance Summary - For the first nine months of 2024, the company's gross margin was 50.8%, unchanged year-on-year. The management expense ratio and sales expense ratio were 6.6% and 25.2%, showing a year-on-year increase of 0.8 percentage points and a decrease of 1.0 percentage points, respectively. The net profit margin for the first nine months was 13.5%, a decrease of 0.2 percentage points year-on-year [2]. - The company is focused on the mid-to-high-end mattress market, aiming to build a high-end brand image. The gross margin and net profit margin are among the highest in the industry. The company is also extending its product categories and steadily advancing its channel layout, indicating significant growth potential in the future [2]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.09 yuan, 2.30 yuan, and 2.59 yuan, respectively. The closing price on October 29 was 38.12 yuan, corresponding to price-to-earnings (PE) ratios of 18X, 17X, and 15X for the respective years [2][3].
慕思股份：零售需求短期承压，积极强化电商渠道布局