WLY(SZ:000858) Guoyuan Securities·2024-11-01 00:30Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Views - The company announced its Q3 2024 results, reporting total revenue of 67.916 billion yuan (up 8.60%) and a net profit attributable to shareholders of 24.931 billion yuan (up 9.19%) for the first three quarters of 2024. In Q3 alone, total revenue was 17.268 billion yuan (up 1.39%) and net profit was 5.874 billion yuan (up 1.34%) [2]. - The company plans to implement a shareholder return plan, committing to a cash dividend of no less than 70% of the annual net profit attributable to shareholders, with a minimum of 20 billion yuan (including tax) for the years 2024-2026 [2]. - The company is focusing on controlling volume to maintain pricing, which has led to a slowdown in revenue growth. As of Q3 2024, the company's contract liabilities reached 7.072 billion yuan, up 79.10% year-on-year [3]. - The gross margin for Q3 2024 improved to 76.17%, up 2.77 percentage points year-on-year, primarily due to price increases for its flagship products [3]. - Operating cash flow for the first three quarters of 2024 increased by 33.08% year-on-year, amounting to 29.794 billion yuan, driven by revenue growth and the collection of bank acceptance bills during the peak sales season [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of 67.916 billion yuan, with a net profit of 24.931 billion yuan, reflecting year-on-year growth of 8.60% and 9.19% respectively [2]. - The gross margin for the first three quarters was 77.06%, an increase of 1.20 percentage points year-on-year [3]. - The company reported a net profit margin of 36.71% for the first three quarters of 2024, showing a slight increase from the previous year [3]. Future Projections - The company is projected to achieve net profits of 32.792 billion yuan, 35.645 billion yuan, and 38.464 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 8.54%, 8.70%, and 7.91% [5]. - The report estimates the company's P/E ratios for 2024, 2025, and 2026 to be 18, 16, and 15 times, respectively, based on a market capitalization of 577.6 billion yuan [5]. Market Strategy - The company is actively working to reduce social inventory of its flagship products while enhancing sales through direct sales channels and new product lines, which are expected to support steady growth in performance [4].