OPPEIN(603833)2024-10-31 07:10Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [5][10]. Core Insights - The company's Q3 performance showed a significant improvement in gross margin, reaching 40.4%, up 2.7 percentage points year-on-year, primarily driven by better margins in wardrobes and related products [4][5]. - Despite a decline in revenue and net profit for the first three quarters of 2024, the company is optimistic about its long-term growth potential due to strategic shifts towards a comprehensive home furnishing model [5][10]. - The company is actively optimizing its product and pricing matrix to enhance competitiveness in a challenging consumer environment [6][9]. Financial Data and Profitability Forecast - For the first three quarters of 2024, the company reported revenue of 13.879 billion yuan, a year-on-year decline of 16.2%, and a net profit of 2.031 billion yuan, down 12.1% [5][8]. - The Q3 revenue was 5.296 billion yuan, reflecting a 21.2% year-on-year decrease, while the net profit for the same period was 1.041 billion yuan, down 11.6% [5][8]. - The company anticipates a gradual recovery in net profit, projecting figures of 2.667 billion yuan, 2.784 billion yuan, and 2.945 billion yuan for 2024, 2025, and 2026 respectively [10][11]. Product and Channel Performance - The Q3 revenue from wardrobes and related products was 2.77 billion yuan, down 19.6%, while kitchen cabinets saw a 29.7% decline in revenue [6][7]. - Retail and bulk sales channels faced challenges, with retail revenue down 20.6% and bulk channel revenue down 28.9% in Q3 [7][9]. - The company is focusing on transforming its sales model to a comprehensive home furnishing approach, with over 850 effective retail stores by mid-2024 [9][10].