Healthcare (SH:603313) EBSCN·2024-11-01 04:10Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company achieved a revenue of 61.3 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 7.2%, while the net profit attributable to shareholders was -1.5 billion yuan [3][5] - The European market continues to show rapid revenue growth, while the domestic and North American markets face challenges [5][9] - The company is optimistic about the recovery of the North American and domestic home furnishing markets, expecting performance elasticity to be released in the future [9][10] Revenue Performance - In Q3 2024, the company reported a revenue of 21.8 billion yuan, up 3.0% year-on-year, with a net profit of -2.1 billion yuan [3] - For the first three quarters of 2024, domestic and overseas sales revenues were 10.5 billion yuan and 49.1 billion yuan, respectively, with year-on-year growth of 9.5% and 6.8% [5] - The company’s self-owned brand generated 8.2 billion yuan in revenue domestically, reflecting a 9.5% increase year-on-year [5] Profitability Analysis - The overall gross margin for the first three quarters of 2024 was 37.2%, an increase of 0.7 percentage points year-on-year [5] - The gross margin for domestic self-owned brands was 45.9%, up 0.4 percentage points year-on-year [5] - In Q3 2024, the gross margin was 35.6%, down 1.7 percentage points year-on-year [7] Expense and Financial Metrics - The company’s expense ratio for the first three quarters of 2024 was 35.0%, an increase of 2.3 percentage points year-on-year [8] - The company recorded a credit impairment loss of 300 million yuan in the first three quarters, negatively impacting profits [8] - The projected revenue for 2024-2026 has been adjusted to 84.1 billion yuan, 97.5 billion yuan, and 111.6 billion yuan, respectively [10][11] Future Outlook - The report anticipates a recovery in the North American home furnishing market due to recent interest rate cuts by the Federal Reserve, which may boost domestic demand [9] - The company is actively expanding its overseas bulk customer base, with expectations for revenue recovery from its U.S. operations [9][10] - The company maintains a positive outlook on the domestic home furnishing market due to recent supportive policies in real estate and consumer spending [9]