WEIXING(SZ:002003) Guotai Junan Securities·2024-10-30 12:17Investment Rating - The investment rating for the company is "Buy" [3] - The target price is set at 16.43 CNY, up from the previous forecast of 14.25 CNY [3] Core Insights - The company reported Q3 revenue of 1.28 billion CNY, a year-on-year increase of 19.3%, exceeding expectations [3] - Gross margin improved significantly, reaching 44.3%, up 2.1 percentage points year-on-year, driven by scale effects and product structure optimization [3] - Excluding the impact of early expense accruals, the adjusted net profit increased by 25% year-on-year, indicating strong performance [3] Revenue and Profit Analysis - Q3 revenue breakdown shows that button and zipper revenues grew at similar rates, primarily driven by volume increases with slight price increases [3] - International brand revenue growth outpaced domestic brand growth in Q3 [3] - The company adjusted its bonus accrual policy, leading to a rise in sales and management expense ratios, but the adjusted net profit still showed strong growth [3] Future Outlook - Order intake has improved since October, suggesting a positive outlook for Q4 performance [3] - The company’s new industrial park in Vietnam began production in March, with expectations for significant order volume by the end of 2024 [3] - The company is expected to achieve a revenue target in the tens of millions for the full year, enhancing its international order capacity [3] Financial Forecast - The company maintains EPS forecasts for 2024, 2025, and 2026 at 0.60 CNY, 0.68 CNY, and 0.77 CNY respectively [8] - Revenue projections are set at 4.59 billion CNY for 2024, 5.24 billion CNY for 2025, and 5.99 billion CNY for 2026, reflecting growth rates of 17.6%, 14.1%, and 14.3% respectively [9][10] - Net profit forecasts are 700 million CNY for 2024, 800 million CNY for 2025, and 906 million CNY for 2026, with growth rates of 25.5%, 14.3%, and 13.2% respectively [9][10]