Hongqi Chain(SZ:002697) KAIYUAN SECURITIES·2024-10-30 07:32Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue performance remains stable, with a year-on-year increase of 1.7% in revenue for the first three quarters of 2024, while net profit attributable to the parent company decreased by 4.2% [1][2] - The company plans to divest its 20% stake in Gansu Hongqi for a nominal price of 1 yuan, which is expected to help in shedding non-performing assets without harming the company's interests [2] - The company is positioned as an "Internet + modern technology chain" firm, executing a differentiated competition strategy of "products + services" [3] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 7.767 billion yuan and a net profit of 390 million yuan [1] - The revenue for Q3 2024 was 2.581 billion yuan, reflecting a decrease of 2.2% year-on-year, while net profit for the same period was 123 million yuan, down 17.9% [1] - The gross margin for Q1-Q3 2024 was 29.1%, and the net margin was 5.0%, showing a slight decline compared to the previous year [2] - The company’s investment income decreased by 17.0% year-on-year, primarily due to changes in investment returns from Xinwang Bank and Gansu Hongqi [2] Future Projections - The company forecasts net profits for 2024, 2025, and 2026 to be 578 million, 600 million, and 629 million yuan respectively, with corresponding EPS of 0.42, 0.44, and 0.46 yuan [1][4] - The projected P/E ratios for the next three years are 11.9, 11.4, and 10.9 times [4] Strategic Positioning - The company focuses on optimizing its product structure and enhancing self-operated product development, with successful products like "Hongqi Preferred" whole wheat bread [3] - It emphasizes the integration of physical and online economies, utilizing a data platform to optimize supply chain management and cost control [3]