Yanghe(SZ:002304) Minsheng Securities·2024-10-31 16:00Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company reported a revenue of 27.52 billion yuan for the first three quarters of 2024, a year-on-year decrease of 9.1%, and a net profit attributable to shareholders of 8.58 billion yuan, down 15.9% year-on-year [2] - The company is facing short-term pressure on profitability due to increased promotional expenses and a decline in sales revenue, particularly in Q3 2024, where revenue dropped by 44.8% year-on-year [2][3] - The company is adjusting its operational strategy to prioritize channel inventory clearance and strengthen relationships with distributors, aiming for long-term healthy development [3] Financial Performance Summary - For the first three quarters of 2024, the gross margin was 73.8%, a decrease of 2.0 percentage points year-on-year, while the net profit margin was 31.2%, down 2.5 percentage points year-on-year [3] - In Q3 2024, the gross margin fell to 66.2%, a decline of 8.6 percentage points year-on-year, with a net profit margin of 13.6%, down 14.2 percentage points year-on-year [3] - The company expects revenues of 30.04 billion, 31.81 billion, and 34.70 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 8.54 billion, 9.07 billion, and 9.91 billion yuan for the same years [3][6] Cash Flow and Dividends - The company reported a decrease in cash received from sales, totaling 24.23 billion yuan for the first three quarters of 2024, down 5.1% year-on-year [3] - The company has announced a cash dividend plan, committing to distribute no less than 70% of the annual net profit as dividends from 2024 to 2026, with a minimum of 7 billion yuan per year [3]