Zhejiang Natural Outdoor Goods (605080) KAIYUAN SECURITIES·2024-10-30 06:40Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q3 2024 revenue and net profit exceeded expectations, driven by significant growth in overseas operations [3] - The report highlights a strong competitive advantage in the vertical integration of inflatable mattresses and waterproof bags, with expectations for continued growth in Q4 [3][4] - The forecast for net profit for 2024-2026 has been adjusted upwards due to better-than-expected revenue growth and fair value changes [3] Financial Summary - Q3 2024 revenue reached 190 million yuan, a year-on-year increase of 34.9%, while net profit attributable to shareholders was 62 million yuan, up 372% [3] - The adjusted net profit forecast for 2024-2026 is 180 million, 230 million, and 260 million yuan respectively [3] - The current stock price corresponds to a P/E ratio of 13.9, 11.3, and 9.9 for the years 2024, 2025, and 2026 respectively [3] Operational Insights - The parent company's business is expected to remain stable, with significant growth anticipated from the Cambodian subsidiary, projected to achieve over 40% revenue growth in H1 2024 [4] - The report notes a decrease in gross margin to 29.3% in Q3 2024, while the net profit margin improved significantly [4] - Cash flow from operating activities for Q3 2024 was 66 million yuan, an increase of 11.8% [4] Future Outlook - The company is expected to continue its robust growth trajectory, particularly in the inflatable mattress segment, with a recovery in order and shipment pace anticipated in H2 2024 [4] - The report indicates that the overseas subsidiaries are expected to grow faster than the parent company, with significant revenue increases projected for water sports products in Vietnam [4]