WGQ(600648) Huafu Securities·2024-11-01 07:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.69 CNY, indicating an expected price increase of over 20% relative to the market benchmark in the next six months [6][7]. Core Views - The company has demonstrated stable operational quality, with a significant increase in quarterly performance driven by real estate sales recognition and a decrease in expense ratios, leading to improved profitability [3][4][5]. - The financial health of the company remains robust, with a stable debt structure and improved cash coverage ratios, allowing for sustained operational capabilities amid industry fluctuations [5][6]. Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 4.982 billion CNY, a year-on-year decrease of 6.93%, and a net profit of 362 million CNY, down 25.96% [2]. - The company achieved a revenue of 2.338 billion CNY in Q3, reflecting a quarter-on-quarter growth of 65.02%, with a net profit of 282 million CNY, up 492.92% from the previous quarter [3]. - The gross margin for Q1-Q3 2024 was 34.6%, an increase of 3.4 percentage points from the first half of 2024, with net profit margin rising to 9.0% [5]. Earnings Forecast and Valuation - The report forecasts revenue growth rates of 6%, 0%, and 19% for 2024 to 2026, with net profit growth rates of 10%, -9%, and 54% respectively [6]. - The estimated EPS for 2024 is 0.90 CNY, with a P/E ratio of 12.7, aligning with the median P/E of comparable companies [6][7].