萤石网络：坚持费用投入力度，积极布局新品和生态

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a revenue of 3.96 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 12.9%. However, the net profit attributable to the parent company was 375 million yuan, a decline of 6.7% year-on-year [5] - The growth in revenue is driven by the "smart home + cloud" strategy, with expectations for continued rapid growth in hardware sales and cloud platform business supported by AI algorithms [5][6] - The gross margin slightly decreased to 42.0% in Q3 2024, down 2.3 percentage points year-on-year, primarily due to product mix changes and rising raw material costs [6] - The management's confidence in the company's long-term prospects is reflected in recent share buybacks by the chairman and the actual controller [6] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 1.38 billion yuan, a year-on-year increase of 12.7%, while the net profit was 93 million yuan, down 34.9% year-on-year [5] - The company has adjusted its profit forecasts for 2024-2026, with expected net profits of 545 million yuan, 714 million yuan, and 947 million yuan respectively [7] - The projected PE ratios for 2024-2026 are 45, 34, and 26 times respectively [7] Market Position and Strategy - The company is actively expanding its global market presence, which is expected to support faster growth in its smart hardware segment [5] - The current ecosystem has been upgraded to "2+5+N", driven by AI and the company's cloud services, which is anticipated to benefit from the widespread adoption of cloud-based SaaS algorithm packages [7] Cost Structure - The company experienced a significant increase in sales, management, and R&D expenses, with growth rates of 28.1%, 26.9%, and 10.5% respectively in Q3 2024 [6] - The increase in expenses is attributed to aggressive marketing of new products and expansion of distribution channels [6]