YanKershop(SZ:002847) CHINA DRAGON SECURITIES·2024-11-01 07:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown robust revenue growth, with a year-on-year increase of 26.20% in Q3 2024, achieving a revenue of 1.402 billion yuan. The net profit attributable to shareholders increased by 15.62% to 174 million yuan [1] - The company has launched new products, "Big Demon King" and "Egg Emperor," which are expected to drive further growth. The quail egg segment saw a remarkable revenue increase of 104.43% year-on-year [1] - The company is focusing on a multi-category strategy and enhancing its brand presence through a big product strategy [1] Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 3.861 billion yuan, representing a year-on-year growth of 28.49%. The net profit attributable to shareholders was 493 million yuan, up 24.55% year-on-year [1] - The gross margin and net margin for Q3 2024 were 30.62% and 12.49%, respectively, showing a decline of 2.32 percentage points and 1.05 percentage points year-on-year due to changes in channel revenue mix and increased tax expenses [1] - The company’s sales expense ratio, management expense ratio, financial expense ratio, and R&D expense ratio for Q3 2024 were 12.13%, 3.11%, 0.17%, and 1.37%, respectively, with year-on-year changes of +0.29 percentage points, -1.34 percentage points, -0.17 percentage points, and -0.23 percentage points [1] Revenue and Profit Forecast - The company is projected to achieve revenues of 5.224 billion yuan, 6.478 billion yuan, and 7.851 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 26.95%, 24.00%, and 21.19% [2] - The net profit attributable to shareholders is expected to be 635 million yuan, 804 million yuan, and 1.020 billion yuan for the same years, with growth rates of 25.53%, 26.59%, and 26.94% [2] - The price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 22.7X, 17.9X, and 14.1X, respectively, indicating a favorable valuation compared to peers [2] Market Position and Strategy - The company is actively expanding its distribution channels, focusing on high-potential membership stores, snacks, and e-commerce, while also maintaining a presence in traditional retail [1] - The establishment of new subsidiaries, focusing on fried goods and poultry products, is expected to contribute to revenue and profit growth starting in Q4 2024 [2]