WEIXING(SZ:002003) Soochow Securities·2024-10-30 08:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 3.58 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 23.26%, with a net profit attributable to shareholders of 624 million yuan, up 17.15% year-on-year [2] - The decline in net profit for Q3 is attributed to changes in expense accrual methods, but excluding this factor, the company is expected to see a 20%+ growth in net profit [2][4] - The company benefits from strong international brand orders, which are expected to grow by over 30% year-on-year, while domestic brand orders are projected to increase by over 10% [3] Financial Performance - For Q3 2024, the gross margin increased by 2.11 percentage points to 44.32%, driven by scale effects and changes in product mix [4] - The operating expense ratio rose by 5.47 percentage points to 25% due to the adjustment in bonus accrual methods, particularly affecting management expenses [4] - The net profit margin for Q3 decreased by 5.24 percentage points to 16.18% [4] Earnings Forecast and Valuation - The company is projected to achieve net profits of 695 million yuan, 803 million yuan, and 919 million yuan for 2024, 2025, and 2026 respectively, corresponding to P/E ratios of 23.75, 20.53, and 17.96 [5] - The company is positioned as a leading player in the domestic apparel accessories market, with a strong internationalization strategy and continuous improvement in smart manufacturing [5]