SCSF(SH:600779)2024-10-31 12:30Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [6]. Core Views - The company reported a revenue of 3.788 billion yuan for the first three quarters of 2024, reflecting a year-on-year growth of 5.56%. The net profit attributable to the parent company was 1.125 billion yuan, up 10.03% year-on-year [5][6]. - The company has optimized its expense allocation and raised profit forecasts for 2024-2026, projecting net profits of 1.342 billion, 1.402 billion, and 1.462 billion yuan respectively, with growth rates of 5.7%, 4.5%, and 4.2% [6]. - The company is expected to leverage its strong brand foundation and nationwide distribution channels to develop a leading product in the mid-to-high-end market segment [6]. Financial Summary - For Q3 2024, the company achieved a revenue of 2.07 billion yuan, a slight increase of 0.38% year-on-year, with a net profit of 883 million yuan, up 7.67% year-on-year [5][6]. - The gross profit margin for Q3 2024 was 84.57%, an increase of 0.86 percentage points year-on-year, driven by improved gross margins and optimized sales expense ratios [7]. - The company’s cash flow from operating activities for Q3 2024 was 1.068 billion yuan, a decrease of 20.47% year-on-year [7]. Market Comparison - The company's stock price closed at 40.25 yuan, with a market capitalization of 19.657 billion yuan. The stock has seen a 52-week high of 65.10 yuan and a low of 30.31 yuan [2][3]. - The company’s price-to-earnings ratio is projected to be 15x, 14x, and 13x for the years 2024, 2025, and 2026 respectively [6].