BEAR APPLIANCE(002959) Guotou Securities·2024-10-31 02:50Investment Rating - The investment rating for the company is "Buy-A" with a target price of 51.75 CNY for the next six months [4]. Core Views - The company has shown a recovery in revenue growth in Q3 2024, with a total revenue of 31.4 billion CNY for the first three quarters, although it represents a year-over-year decline of 5.4%. The net profit for the same period was 1.8 billion CNY, down 42.9% year-over-year [2][3]. - The company is actively expanding its product categories and focusing on overseas markets, which is expected to support revenue growth in the future [2]. - The domestic kitchen appliance market is currently in a recovery phase, and the company anticipates improvements in domestic sales following the implementation of a trade-in policy for old appliances [2]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue is projected to grow from 41.2 billion CNY in 2022 to 55.8 billion CNY by 2026 [13]. - Net profit is expected to fluctuate, with estimates of 3.9 billion CNY in 2022, dropping to 2.7 billion CNY in 2024, and then recovering to 3.3 billion CNY by 2026 [13]. - Earnings Per Share (EPS): - EPS is forecasted to be 2.48 CNY in 2022, increasing to 2.08 CNY by 2026 [13]. - Valuation Metrics: - The price-to-earnings (P/E) ratio is expected to be 17.9 in 2022, decreasing to 21.4 by 2026 [13]. - The price-to-book (P/B) ratio is projected to decline from 2.9 in 2022 to 2.2 in 2026 [13]. - Profitability Ratios: - The net profit margin is expected to be 9.4% in 2022, decreasing to 5.8% by 2026 [13]. - Return on equity (ROE) is projected to decline from 16.3% in 2022 to 10.1% in 2026 [13]. - Dividend Yield: - The dividend yield is expected to increase from 1.8% in 2022 to 2.1% by 2026 [13].