XIANGPIAOPIAO(SH:603711) Minsheng Securities·2024-10-31 14:42Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 13.72 yuan [6]. Core Views - The company reported a revenue of 1.938 billion yuan for the first three quarters of 2024, a year-on-year decrease of 2.05%, while the net profit attributable to the parent company was 18 million yuan, a significant increase of 408.98% year-on-year [3]. - The company is focusing on the upcoming Spring Festival peak season for inventory and sales, expecting distributors to actively stock up in advance [3]. - The company is actively exploring new channels and scenarios, although the e-commerce channel has seen a significant decline [3]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 759 million yuan, down 6.10% year-on-year, with a net profit of 47 million yuan, down 0.62% year-on-year [3]. - The gross profit margin for Q3 2024 was 40.94%, an increase of 2.41 percentage points year-on-year, attributed to a decrease in raw material costs [3]. - The company’s sales, management, R&D, and financial expense ratios for Q3 2024 were 26.13%, 8.06%, 1.58%, and -1.23% respectively, showing a decline in efficiency due to pressure on revenue [3]. Product Performance Summary - Instant drink products have seen accelerated growth, while brewed products have experienced a more pronounced decline. In Q3 2024, brewed products generated 496 million yuan in revenue, down 14.9% year-on-year, while instant drink products generated 254 million yuan, up 17.8% year-on-year [3]. - The company has been innovating and upgrading its milk tea products and expanding its product line to meet consumer demand for diverse flavors [3]. Regional Performance Summary - The company’s revenue in the East China region remained stable, achieving 363 million yuan in Q3 2024, up 4.1% year-on-year, accounting for 48% of total revenue [3]. - The company has a total of 1,851 distributors as of Q3 2024, with a net increase of 320 distributors in the first three quarters [3].