OPPEIN(603833) Guotai Junan Securities·2024-10-30 21:08Investment Rating - The investment rating for the company is "Buy" with a target price of 90.80 CNY, up from a previous forecast of 71.10 CNY [4][10]. Core Views - The company's cost reduction and efficiency enhancement strategy has positively impacted its gross margin, leading to better-than-expected performance in Q3 [3]. - The company is experiencing a steady advancement in its home furnishing strategy, despite short-term revenue pressures due to market conditions [10]. Summary by Sections Financial Performance - The company's Q3 revenue from cabinets, wardrobes, and related products was 14.7 billion CNY, down 29.7% year-on-year. The revenue from wardrobes was 27.7 billion CNY, down 19.6% year-on-year, and from sanitary ware and wooden doors was 3.0 billion CNY and 3.3 billion CNY, down 15.9% and 21.9% year-on-year, respectively [10]. - The overall gross margin improved to 40.4%, an increase of 2.7 percentage points year-on-year, driven by cost control measures and favorable material price differences [10]. Future Earnings Expectations - The company maintains its earnings expectations, forecasting EPS of 4.74 CNY, 5.04 CNY, and 5.56 CNY for 2024, 2025, and 2026, respectively [10][11]. - The company plans to distribute a total cash dividend of no less than 4.5 billion CNY from 2024 to 2026, indicating a stable return for shareholders [10]. Market Position and Strategy - The company has a total of 8,180 stores as of Q3 2024, with a net increase of 149 stores since the end of Q2 [10]. - The company is actively promoting its "big home" strategy, integrating channels and product lines to enhance profitability for its distributors [10].