Guangzhou Restaurant(SH:603043) Guoxin Securities·2024-11-01 02:25Investment Rating - The investment rating for the company is "Outperform the Market" [6][14]. Core Views - The company experienced a slight increase in revenue in the third quarter, with a year-on-year decline in net profit attributable to the parent company. In Q3 2024, the company achieved revenue of 2.191 billion yuan (+2.27%) and a net profit of 390 million yuan (-5.35%) [2][7]. - For the first three quarters of 2024, the company reported revenue of 4.103 billion yuan (+5.86%) and a net profit of 448 million yuan (-8.87%), indicating stable revenue growth but pressure on profit margins due to consumer price sensitivity [2][7]. Summary by Sections Financial Performance - In Q3 2024, the company’s revenue was 2.191 billion yuan, reflecting a 2.27% increase, while the net profit was 390 million yuan, down 5.35% year-on-year. The net profit excluding non-recurring items was 384 million yuan, a decrease of 4.45% [2][7]. - For the first three quarters of 2024, the company achieved a total revenue of 4.103 billion yuan, up 5.86%, and a net profit of 448 million yuan, down 8.87% [2][7]. Business Segments - The mooncake business remained stable, generating revenue of 1.441 billion yuan (+0.24%) in the first three quarters, with an estimated sales volume increase of 1.5%. The frozen food segment saw revenue decline to 772 million yuan (-1.84%) due to weak demand [3][4]. - Other food products, including rice dumplings and prepared dishes, generated 730 million yuan in revenue, marking a growth of 13.85%. Overall, the food business revenue was 2.940 billion yuan (+2.70%) [3][4]. Margin and Cost Control - The gross margin for the first three quarters was 33.1%, down 3.3 percentage points, primarily due to the current consumer price sensitivity and changes in sales channels. The period expense ratio was 17.94%, a decrease of 1.01 percentage points, indicating effective cost control [3][10]. Market Strategy - The company is actively expanding its membership-based supermarkets and various online channels to counteract pressure from traditional retail channels. The restaurant segment saw a net increase of six direct-operated restaurants in the first half of the year, with plans for further expansion [4][11]. - The company is expected to enhance its market-driven incentive measures in response to ongoing state-owned enterprise reforms, aiming to strengthen its brand in a competitive market [4][11].