OPPEIN(603833) Guohai Securities·2024-10-31 06:58Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5][8] Core Views - The company has shown a significant improvement in profitability despite a decline in revenue, with a firm commitment to advancing its home furnishing strategy [1][5] - The company is strategically increasing investments in brand promotion, e-commerce traffic, and market training to enhance consumer and dealer benefits [3][4] Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 13.879 billion yuan, a year-on-year decrease of 16.21%, and a net profit of 2.031 billion yuan, down 12.08% year-on-year [1] - In Q3 2024, the company achieved revenue of 5.296 billion yuan, a decline of 21.21% year-on-year, with a net profit of 1.041 billion yuan, down 11.56% year-on-year [1] Product Performance - Revenue from major product categories showed pressure, with cabinets and wardrobes down 21.99% and 18.99% respectively, while the decline in the bathroom segment was relatively smaller at 1.62% [2] - The company’s gross margin for Q1-Q3 2024 was 35.54%, an increase of 1.55 percentage points year-on-year, while the net margin was 14.66%, up 0.77 percentage points year-on-year [3] Channel Performance - Direct sales channels led growth, with revenue from direct sales increasing by 4.09%, while revenue from distribution and bulk business decreased by 18.90% and 12.33% respectively [2] - The total number of stores decreased by 536 compared to the end of 2023, totaling 8,180 stores [2] Future Outlook - The company is expected to achieve revenues of 20.646 billion yuan, 21.708 billion yuan, and 22.819 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 2.758 billion yuan, 2.959 billion yuan, and 3.146 billion yuan [5][6] - The company is actively responding to the "old-for-new" policy, which is expected to stimulate demand and enhance customer flow and conversion [4]