China National Gold (SH:600916) KAIYUAN SECURITIES·2024-10-31 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 465.75 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 12.7%, while the net profit attributable to the parent company was 7.46 billion yuan, up 0.6% year-on-year. However, the performance in Q3 2024 showed a revenue decline of 2.8% to 114.19 billion yuan and a net profit drop of 25.7% to 1.51 billion yuan. Due to factors such as gold price fluctuations and a sluggish consumption environment, the profit forecasts for 2024-2026 have been revised downwards [1][2][3] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 465.75 billion yuan, with a year-on-year growth of 12.7%. The net profit attributable to the parent company was 7.46 billion yuan, reflecting a slight increase of 0.6%. In Q3 2024, revenue was 114.19 billion yuan, down 2.8%, and net profit was 1.51 billion yuan, down 25.7% [1][2] - The company’s comprehensive gross margin for Q3 2024 was 3.6%, a decrease of 0.6 percentage points, and the net profit margin was 1.3%, down 0.4 percentage points [2] Regional Performance - Revenue performance varied significantly across regions in Q1-Q3 2024, with North China, East China, South China, Central China, Southwest, Northeast, and Northwest regions achieving revenues of 74.48 billion, 258.83 billion, 47.21 billion, 26.88 billion, 25.68 billion, 13.82 billion, and 16.31 billion yuan respectively, with year-on-year changes of +3.4%, +32.2%, +5.6%, -18.2%, -9.4%, -12.7%, and -20.6% [2] Strategic Initiatives - The company is actively seeking channel expansion despite market challenges, having closed 42 stores in Q1-Q3 2024, with a total of 4,215 stores at the end of the period. The focus is on franchise channels and enhancing product capabilities [3] - New product lines were launched at the China International Jewelry Exhibition, including the Snake Year Zodiac series and the Master Gold series, aimed at enriching the product matrix and increasing the proportion of self-developed products [3] - The company is also enhancing its brand presence through collaborations with sports events, such as being a strategic partner for the World Table Tennis Professional League in China during the Paris Olympics [3]