BROS(601339) EBSCN·2024-11-01 02:20Investment Rating - The report maintains a "Buy" rating for the company [3][10]. Core Views - The company has shown a strong performance in Q3 2024 with a revenue of 2.09 billion yuan, representing a year-on-year growth of 11.4%. The net profit attributable to shareholders was 180 million yuan, a decline of 35.7%, while the non-recurring net profit was 150 million yuan, indicating a turnaround from losses [2][3]. - The company is expected to continue its recovery in profitability as a leading player in the colored yarn sector, leveraging its international layout and gradually increasing market share [3][4]. - The report has adjusted the profit forecasts for 2024-2026, reducing the net profit estimates by 17% for 2024, 17% for 2025, and 15% for 2026, with corresponding EPS estimates of 0.39, 0.51, and 0.59 yuan, and PE ratios of 14, 11, and 9 times respectively [3][4]. Financial Performance Summary - In the first three quarters of 2024, the company achieved a total revenue of 6.07 billion yuan, a year-on-year increase of 19.3%. The net profit attributable to shareholders was 410 million yuan, down 25.4%, while the non-recurring net profit surged by 138.6% to 250 million yuan [4][5]. - The gross margin improved by 0.6 percentage points to 11.4% in the first three quarters, with a quarterly recovery trend observed [5][6]. - Inventory as of September 2024 decreased by 12.1% from the beginning of the year to 4.14 billion yuan, with inventory turnover days reduced by 84 days to 222 days [3][4]. - Accounts receivable also saw a reduction of 4.0% to 590 million yuan, with turnover days decreasing by 2 days to 27 days [3][4]. - Operating cash flow for the first three quarters was 1.24 billion yuan, reflecting a significant year-on-year growth of 98.8% [3][4].