Shanghai Shuixing Home Textile (SH:603365) Soochow Securities·2024-10-31 23:07Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 2.683 billion yuan for the first three quarters of 2024, a year-on-year decrease of 2.57%, and a net profit attributable to shareholders of 210 million yuan, down 16.8% year-on-year [2] - The overall consumption environment is weak, impacting the company's performance, with expectations for improvement in terminal demand [2][4] - The gross margin for Q3 2024 remained stable, slightly increasing to 40.5%, while the net profit margin decreased to 7.25% [3] Financial Performance Summary - Revenue and Profit Forecast: - Total revenue for 2022 was 3.664 billion yuan, with projections of 4.139 billion yuan for 2024, reflecting a year-on-year decrease of 1.72% [1] - Net profit attributable to shareholders was 278.26 million yuan in 2022, projected to be 327.10 million yuan in 2024, a decrease of 13.71% year-on-year [1] - Cash Flow and Inventory: - As of Q3 2024, inventory increased to 1.21 billion yuan, up 25.95% year-on-year, with inventory turnover days extending to 186 days [4] - Operating cash flow for Q3 2024 was negative 15.78 million yuan, primarily due to reduced cash from sales and increased payments [4] - Management Actions: - The company announced a second share repurchase plan in September 2024, indicating management's confidence in long-term operations [4] - The termination of a convertible bond issuance is seen as a move to reduce operational risks in a challenging market [4]