WLY(SZ:000858) Guohai Securities·2024-11-01 13:52Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][7] Core Views - The company has demonstrated steady revenue growth, with a reported revenue of 67.916 billion yuan for the first three quarters of 2024, reflecting an increase of 8.60% year-on-year. The net profit attributable to shareholders reached 24.931 billion yuan, up 9.19% year-on-year [1][4] - The company has actively managed its product structure and market positioning, introducing new products to meet diverse consumer needs, which has contributed to its strong performance despite industry challenges [1][4] - The company has significantly increased its dividend payout ratio to not less than 70% of the net profit attributable to shareholders for the years 2024-2026, with a minimum cash dividend of 20 billion yuan per year, showcasing its commitment to shareholder returns [1][4] Financial Performance Summary - For Q3 2024, the company reported revenue of 17.268 billion yuan, a year-on-year increase of 1.39%, and a net profit of 5.874 billion yuan, up 1.34% year-on-year [1] - The gross profit margin improved by 2.76 percentage points to 76.17%, attributed to product mix enhancement and cost optimization [1][4] - Cash flow from operations showed significant growth, with operating cash flow net amounting to 16.366 billion yuan, a year-on-year increase of 47.99% [1][4] Earnings Forecast - The company is projected to achieve revenues of 90.267 billion yuan, 96.044 billion yuan, and 101.903 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 32.994 billion yuan, 35.383 billion yuan, and 37.817 billion yuan [4][5][7] - The earnings per share (EPS) are expected to be 8.50 yuan, 9.12 yuan, and 9.74 yuan for the same years, with price-to-earnings (P/E) ratios of 17, 16, and 15, respectively [4][5][7]