GUJING(000596) SINOLINK SECURITIES·2024-10-31 03:45Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4][10]. Core Insights - The company's performance in Q3 2024 met expectations, with revenue of 19.07 billion RMB, a year-on-year increase of 19.5%, and a net profit of 4.75 billion RMB, up 24.5% year-on-year [4]. - The company is expected to continue its growth trajectory, with projected revenues of 23.9 billion RMB in 2024, 26.5 billion RMB in 2025, and 29.9 billion RMB in 2026, reflecting growth rates of 18.0%, 10.7%, and 13.2% respectively [3][4]. - The report highlights the company's strong brand recognition and operational resilience, particularly in its home market, while also noting the challenges faced in expanding outside its primary region [5]. Financial Summary - Revenue and Profit Forecast: - 2022: Revenue of 16.71 billion RMB, net profit of 3.14 billion RMB - 2023: Revenue of 20.25 billion RMB, net profit of 4.59 billion RMB - 2024E: Revenue of 23.90 billion RMB, net profit of 5.67 billion RMB - 2025E: Revenue of 26.45 billion RMB, net profit of 6.50 billion RMB - 2026E: Revenue of 29.94 billion RMB, net profit of 7.68 billion RMB [3][4]. - Earnings Per Share (EPS) is projected to grow from 8.68 RMB in 2023 to 14.54 RMB in 2026, reflecting a strong upward trend [3][4]. - The company's return on equity (ROE) is expected to improve from 21.32% in 2023 to 24.43% in 2026, indicating enhanced profitability [3][4]. Valuation Metrics - The current price-to-earnings (P/E) ratio is 26.81, projected to decrease to 12.82 by 2026, suggesting the stock may become more attractive over time [3][4]. - The price-to-book (P/B) ratio is expected to decline from 5.72 in 2023 to 3.13 in 2026, indicating potential undervaluation as the company grows [3][4].