Semir(SZ:002563) EBSCN·2024-11-01 00:07Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's Q3 performance showed a sequential decline, but the start of Q4 has been promising, with expectations for a boost from the winter clothing season [2]. - The company reported a 5.6% year-on-year increase in revenue for the first three quarters of 2024, reaching 9.4 billion yuan, while net profit attributable to shareholders decreased by 9.2% to 760 million yuan [1][2]. - The report anticipates that consumer demand may improve with the implementation of consumption-boosting policies [2]. Summary by Relevant Sections Financial Performance - For Q3 2024, the company achieved revenue of 3.44 billion yuan, a 3.2% year-on-year increase, but net profit fell by 36.0% to 200 million yuan [1]. - The gross profit margin for the first three quarters increased by 0.6 percentage points to 44.8%, while the net profit margin decreased by 1.3 percentage points to 8.0% [1]. - The company’s cash and cash equivalents, along with trading financial assets, totaled 5.99 billion yuan as of September 2024, indicating strong risk resistance [2]. Profit Forecast and Valuation - The report has adjusted the profit forecasts for 2024-2026, reducing the net profit estimates by 12% for 2024 and 2025, and 13% for 2026 [2]. - The expected EPS for 2024, 2025, and 2026 are 0.43 yuan, 0.49 yuan, and 0.56 yuan, respectively, with corresponding P/E ratios of 14, 12, and 11 [2][3]. Market Position and Strategy - The company’s retail sales across all channels grew approximately 2% year-on-year, with online sales increasing by about 12% while offline sales declined by around 2% [1]. - The report highlights the company's strategy of increasing store openings and brand building, which has led to a rise in sales expenses [1].