周大生：2024Q3营收降幅有所扩大，毛利率同环比均改善

Investment Rating - The investment rating for the company is "Buy-B" [1] Core Views - The company reported a revenue decline of 13.49% year-on-year for the first three quarters of 2024, totaling 10.809 billion yuan, with a net profit of 855 million yuan, down 21.95% year-on-year [1] - The domestic gold jewelry consumption remains sluggish, leading to an expanded revenue decline in Q3 2024, with embedded products and gold products experiencing significant revenue drops [1][4] - Despite the challenges, the company has improved its gross margin significantly in Q3 2024, attributed to a decrease in the revenue share from lower-margin franchise channels and ongoing product structure adjustments [1][4] Financial Performance Summary - For the first three quarters of 2024, the company achieved a gross margin of 20.6%, an increase of 2.4 percentage points year-on-year [1] - The operating cash flow for the first three quarters of 2024 was 1.315 billion yuan, a substantial increase of 1310.22% year-on-year, primarily due to a decrease in cash payments for goods and services [3] - The company’s net profit margin for Q3 2024 improved to 9.7%, up 1.7 percentage points year-on-year, despite a decline in overall sales [1][4] Revenue and Profit Forecast - The company’s revenue for 2024 is projected to be 13.89 billion yuan, reflecting a year-on-year decrease of 14.7%, with expected EPS of 0.99 yuan [6][4] - The forecast for EPS in 2025 and 2026 is 1.10 yuan and 1.21 yuan respectively, with corresponding P/E ratios of 10.2 and 9.3 [4][6] Market Position and Strategy - The company continues to invest in product research and development, enhancing its product offerings and marketing efforts to strengthen brand presence despite a challenging market environment [4] - The company opened 129 new offline stores in the first three quarters of 2024, indicating a commitment to expanding its retail footprint [1]