UE(SH:603600) Tianfeng Securities·2024-10-31 00:48Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 12.62 CNY, indicating an expected relative return of 10%-20% over the next six months [5]. Core Views - The company has demonstrated significant revenue growth, achieving 1.34 billion CNY in Q3 2024, a year-on-year increase of 38.8%, and a net profit of 100 million CNY, up 42.3% year-on-year [1]. - The strong performance is attributed to the acceleration of new customer acquisition, channel expansion, and project launches [1]. - The gross margin for Q3 2024 stands at 22.4%, reflecting a slight decrease of 0.6 percentage points year-on-year, while the net profit margin improved by 0.2 percentage points to 7.4% [1]. Summary by Sections External Sales - The company is focusing on new customer acquisition and channel development, with significant orders from major clients like Costco and Sam's, contributing to business growth [2]. - The establishment of overseas production bases, particularly in Vietnam and Romania, is enhancing the company's market share in the U.S. and Europe [2]. Internal Sales - The company is enhancing its online presence through platforms like Tmall, JD, and Douyin, leading to increased sales and brand recognition [3]. - Offline, the company is expanding its direct sales channels and retail presence, including flagship stores, to broaden its market coverage [3]. Financial Forecast - The company has a comprehensive sales channel strategy covering both domestic and international markets, with strong market expansion capabilities [4]. - The forecast for net profit for 2024-2026 is projected at 330 million CNY, 410 million CNY, and 490 million CNY, respectively, with corresponding P/E ratios of 13, 10, and 8 times [4].