OPPEIN(603833) China Post Securities·2024-11-01 10:30Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company reported a revenue of 13.879 billion yuan for the first three quarters of 2024, a year-on-year decrease of 16.21%, with a net profit of 2.031 billion yuan, down 12.08% year-on-year [2][5] - In Q3 alone, the company achieved a revenue of 5.296 billion yuan, reflecting a year-on-year decline of 21.21%, while the net profit was 1.041 billion yuan, down 11.56% year-on-year [2][5] - Despite the revenue pressure, the net profit margin continued to improve, indicating better profitability relative to revenue [2][5] Revenue Performance - Revenue from the company's main product lines showed declines: kitchen cabinets down 21.99%, wardrobes down 18.99%, and bathroom products down 1.62%, while the wooden doors segment decreased by 17.10% [3] - The gross margin for wardrobes improved by 5.72 percentage points year-on-year, while kitchen cabinets saw a decline of 3.28 percentage points [3] - Direct sales channels experienced a revenue increase of 4.09%, while dealer and bulk business revenues fell by 18.90% and 12.33%, respectively [3] Profitability Improvement - The company's gross margin and net margin for the first three quarters of 2024 were 35.54% and 14.66%, respectively, both showing year-on-year increases of 1.55 percentage points and 0.77 percentage points [4] - In Q3, the gross margin reached 40.36%, with a net margin of 19.68%, reflecting year-on-year increases of 2.75 percentage points and 2.18 percentage points [4] - The reduction in operating expenses contributed to the improved profitability, with a decrease in the expense ratio by 0.85 percentage points year-on-year [4] Future Outlook - The company is expected to maintain its leading position in the custom home furnishing industry, with anticipated net profits of 2.700 billion yuan, 2.869 billion yuan, and 3.040 billion yuan for 2024, 2025, and 2026, respectively [5] - Corresponding price-to-earnings ratios are projected to be 16, 15, and 14 times for the respective years [5]