NHD(SZ:002946) Huachuang Securities·2024-10-31 06:05Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 15 CNY, while the current price is 11.69 CNY [4]. Core Views - The company's main business shows strong growth despite a challenging market environment, with revenue and profit exceeding expectations [1][2]. - The company is expected to continue benefiting from cost reductions and operational improvements, leading to sustained high growth in earnings [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved total revenue of 8.1 billion CNY, a slight decrease of 0.54% year-on-year, while net profit attributable to shareholders reached 474 million CNY, an increase of 24.4% year-on-year [1]. - In Q3 alone, revenue was 2.785 billion CNY, down 3.82% year-on-year, but net profit increased by 22.9% to 177 million CNY [1]. - The gross margin improved to 28.8%, up 2.4 percentage points year-on-year, driven by cost reductions and structural optimization [1]. Earnings Forecast - The report projects earnings per share (EPS) of 0.63 CNY for 2024, 0.76 CNY for 2025, and 0.89 CNY for 2026, with corresponding price-to-earnings (PE) ratios of 18, 15, and 13 [2][3]. - The company aims for a doubling of net profit margin over the five years from 2023 to 2027 [2]. Market Position and Strategy - The company is strategically expanding its low-temperature business and direct-to-consumer (DTC) channels, which are expected to drive revenue growth [2]. - The company has successfully entered strategic partnerships and is adapting to market changes, enhancing its operational capabilities [2].