GUJING(SZ:000596) Huaxin Securities·2024-11-01 10:34Investment Rating - The report maintains a "Buy" investment rating for the company [4] Core Views - The company's performance is in line with expectations, with profit growth slightly outpacing revenue growth. For the first three quarters of 2024, total revenue reached 19.069 billion yuan, a year-on-year increase of 19.53%, while net profit attributable to shareholders was 4.746 billion yuan, up 24.49% year-on-year [2] - The company is optimizing its investment efforts, with a slight adjustment in product structure. The gross margin and net margin for the first three quarters of 2024 were 79.71% and 25.68%, respectively, showing a year-on-year increase of 0.67 and 1.17 percentage points [2] - The company is focusing on expanding its market presence both within and outside its home province, with significant growth in premium products driven by local consumption upgrades [3] Summary by Sections Performance Overview - For Q1-Q3 2024, total revenue was 19.069 billion yuan, with a year-on-year growth of 19.53%. The net profit attributable to shareholders was 4.746 billion yuan, reflecting a 24.49% increase year-on-year. In Q3 alone, total revenue was 5.263 billion yuan, up 13.36%, and net profit was 1.174 billion yuan, an increase of 13.60% [2] - The company reported a net cash flow from operating activities of 5.344 billion yuan for Q1-Q3 2024, a year-on-year increase of 6.56%, and 1.334 billion yuan for Q3, up 34.55% [2] Market Strategy - The company is leveraging its leading position in the home province while making significant strides in external markets, particularly in Jiangsu, Shandong, and Henan [3] - The product mix is being upgraded, with notable growth in products priced at 16 yuan and above, benefiting from local consumption trends [3] Earnings Forecast - The earnings per share (EPS) estimates for 2024-2026 have been adjusted to 10.41, 11.98, and 13.72 yuan, respectively. The current stock price corresponds to price-to-earnings (PE) ratios of 18, 16, and 14 times for the respective years [4]