King's Luck(SH:603369)2024-11-01 06:15Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong potential for outperforming the market [5][11]. Core Insights - The company reported a revenue of 9.94 billion in the first three quarters of 2024, reflecting an 18.9% year-on-year growth, with a net profit of 3.09 billion, up 17.1% year-on-year [5][6]. - The third quarter of 2024 saw a revenue of 2.64 billion, a 10.1% increase year-on-year, and a net profit of 620 million, growing 6.6% year-on-year [5][6]. - The company is positioned as a strong regional leader with solid growth potential, supported by its clear brand positioning and product structure that aligns with consumer trends in Jiangsu province [5][6]. Financial Summary - For 2024, the company forecasts net profits of 3.61 billion, 4.10 billion, and 4.41 billion for 2024, 2025, and 2026 respectively, with growth rates of 15%, 14%, and 8% [5][6]. - The gross profit margin for the third quarter of 2024 was 75.6%, down 5.1 percentage points year-on-year, while the net profit margin was 23.7%, a decrease of 0.8 percentage points [5][6]. - The operating cash flow for the third quarter of 2024 was 980 million, compared to 1.18 billion in the same period last year, indicating a slower cash flow growth relative to revenue [5][6]. Product Performance - The revenue from premium products in the third quarter of 2024 was 1.81 billion, showing an 11.7% year-on-year increase, accounting for 69% of total revenue [5][6]. - The company launched a new high-end product, enhancing its brand strength and market presence [5][6]. Market Trends - The company continues to see faster growth in the provincial markets outside Jiangsu, with a 23% year-on-year increase in revenue from these regions [5][6]. - The report highlights the potential for growth in the mid-to-high-end market segments and the exploration of markets outside the province [5][6].