BIEM(002832) Guotai Junan Securities·2024-11-01 05:09Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 24.44 CNY, reflecting a PE ratio of 15 times for 2024, which is above the industry average [4][5]. Core Views - The company's Q3 performance is significantly better than the industry average despite short-term profit fluctuations due to increased investment in international brand development. The company continues to expand its store network while focusing on store profitability, indicating potential for high-quality growth in the future [3][4]. - For the first three quarters of 2024, the company reported revenues of 3.0 billion CNY, a year-on-year increase of 7.3%, and a net profit attributable to shareholders of 760 million CNY, up 0.6% year-on-year. However, Q3 revenue was 1.06 billion CNY, down 4.4% year-on-year, and net profit was 280 million CNY, down 17.3% year-on-year [4][5]. Financial Summary - The company has adjusted its EPS forecasts for 2024-2026 to 1.61, 1.85, and 2.08 CNY respectively, down from previous estimates of 1.88, 2.20, and 2.53 CNY due to weak consumer demand affecting terminal sales [4]. - The company opened 59 new stores and closed 51 in H1 2024, resulting in a net increase of 8 stores, with a focus on improving store operational quality and profitability [4][5]. - As of the end of Q3, inventory increased by 28% year-on-year to 890 million CNY, primarily due to increased stock for new and existing brands [4]. Market Data - The company's current stock price is 19.63 CNY, with a 52-week price range of 16.68 to 33.66 CNY and a total market capitalization of 11.203 billion CNY [6][5]. - The company has a net asset value per share of 8.91 CNY, with a current price-to-book ratio of 2.2 [7]. Financial Forecast - The company is projected to achieve total revenues of 3.763 billion CNY in 2024, with a net profit of 917 million CNY, reflecting a growth rate of 6.4% and 0.7% respectively [10][11]. - The report indicates a stable EBIT margin of around 28.6% for 2024, with a projected return on equity (ROE) of 17.5% [10][11]. Comparable Company Valuation - The report includes a comparison with similar companies, indicating that the company is positioned favorably within the industry, with a projected PE ratio of 12 for 2024 [12].