LFX(600612) 东吴证券·2024-10-30 05:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - In Q3 2024, the company's net profit attributable to shareholders decreased by 46.2% year-on-year, with total revenue for the first three quarters at 52.582 billion yuan, down 15.28% year-on-year [2] - The increase in gold prices has affected the cash flow from franchisees, leading to a slight decline in gross and net profit margins [2] - The company plans to invest 840 million yuan in the Caoxi Road project, which aims to enhance its brand image and operational environment [3] - The company has adjusted its net profit forecasts for 2024-2026 downwards due to demand suppression from rising gold prices, but maintains a "Buy" rating as the stock is considered undervalued [4] Financial Performance Summary - For Q3 2024, the company reported total revenue of 12.623 billion yuan, a decrease of 41.89% year-on-year, and a net profit of 372 million yuan, down 46.2% year-on-year [2] - The overall gross margin for Q3 was 6.52%, a decrease of 0.98 percentage points year-on-year, while the net margin was 3.68%, down 0.57 percentage points year-on-year [2] - The company's revenue forecast for 2024 is 66.434 billion yuan, with a projected net profit of 2.036 billion yuan [4] Investment and Valuation Metrics - The latest closing price gives a P/E ratio of 14.40 for 2024, 13.05 for 2025, and 11.93 for 2026 [1][4] - The company's market capitalization is approximately 29.326 billion yuan, with a circulating A-share market value of about 17.777 billion yuan [6] - The company has a book value per share of 23.57 yuan and a debt-to-asset ratio of 40.08% [7]