Juewei Food (603517) 长江证券·2024-11-01 04:12Investment Rating - The investment rating for the company is "Buy" and is maintained [6][8]. Core Views - The company's total revenue for Q1-Q3 2024 is 5.015 billion yuan, a year-on-year decrease of 10.95%. The net profit attributable to the parent company is 438 million yuan, an increase of 12.53%, while the net profit excluding non-recurring items is 424 million yuan, up 15.73% [3][4]. - In Q3 2024, the total revenue is 1.675 billion yuan, down 13.29%, with a net profit of 143 million yuan, a decrease of 3.33%, and a net profit excluding non-recurring items of 143 million yuan, an increase of 2.11% [3][4]. - The company is experiencing pressure on revenue, particularly in the fresh goods category, which saw a decline of 15.99% year-on-year in Q3 2024. Poultry products specifically faced a significant drop of 17.47% [3][4]. - The company has increased its marketing expenses significantly, with advertising costs rising by 42.22% in the first half of 2024, primarily due to increased online promotional activities [5]. Summary by Sections Revenue Analysis - Revenue from fresh goods in Q3 2024 is 1.256 billion yuan, down 15.99% year-on-year, with poultry contributing 960 million yuan, down 17.47% [3][4]. - Revenue by region shows significant declines in the Northwest (down 36.75%) and Central China (down 24.26%), while North China experienced growth of 9.73% [4]. Cost and Profitability - The net profit margin for Q1-Q3 2024 increased by 1.82 percentage points to 8.74%, with a gross margin increase of 6.41 percentage points to 30.56% [5]. - In Q3 2024, the net profit margin improved by 0.88 percentage points to 8.52%, with a gross margin of 31.12% [5]. Earnings Forecast - The forecast for net profit attributable to the parent company for 2024-2026 is 529 million yuan, 556 million yuan, and 600 million yuan respectively, with EPS projected at 0.85, 0.90, and 0.97 yuan [6].