SCSF(SH:600779) SINOLINK SECURITIES·2024-10-31 06:54Investment Rating - The report maintains an "Accumulate" rating for the company [2][5][11]. Core Insights - The company reported a revenue of 3.79 billion RMB for Q3 2024, a year-on-year increase of 5.6%, and a net profit attributable to shareholders of 1.13 billion RMB, up 10.0% year-on-year. For Q3 2024, revenue was 2.07 billion RMB, with a slight increase of 0.4% year-on-year, and a net profit of 880 million RMB, reflecting a 7.7% year-on-year growth [2][4]. - The company has shown resilience in a fluctuating industry environment, supported by strong consumer bases for its premium products and stable manufacturer relationships [4]. Summary by Sections Performance Analysis - In Q3 2024, the high-end and mid-range products generated revenues of 3.46 billion RMB and 200 million RMB, respectively, with year-on-year growth rates of 1% and 41%. The gross margin for high-end products increased by 1.4 percentage points, while mid-range products saw a decrease of 0.7 percentage points [3]. - The net profit margin for Q3 2024 increased by 2.9 percentage points to 42.6%, driven by a 0.9 percentage point increase in gross margin, primarily from high-end products, and a reduction in sales expense ratio by 4.0 percentage points [3]. Financial Forecasts - The report adjusts the net profit forecasts for 2025 and 2026 down by 8% each, projecting revenue growth rates of 4.0%, 4.9%, and 8.9% for 2024 to 2026, respectively. The net profit growth rates are expected to be 9.4%, 6.1%, and 11.6% for the same period, with corresponding net profits of 1.39 billion RMB, 1.47 billion RMB, and 1.64 billion RMB [5][7]. - The earnings per share (EPS) are projected to be 2.84 RMB, 3.02 RMB, and 3.37 RMB for 2024 to 2026, with the current stock price reflecting a price-to-earnings (P/E) ratio of 14.2, 13.4, and 12.0 times for the respective years [5][7]. Market Position - The company has maintained a strong market position with a focus on high-end products, which are expected to contribute significantly to revenue stability and growth in the coming years [4][5]. - The report emphasizes the importance of the Q3 performance as a strong start to the fiscal year, indicating the company's ability to navigate through industry fluctuations effectively [4].