GUJING(SZ:000596) Soochow Securities·2024-11-01 14:13Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in the first three quarters of 2024 met expectations, with revenue of 19.07 billion yuan, a year-on-year increase of 19.5%, and a net profit attributable to shareholders of 4.75 billion yuan, up 24.5% year-on-year [2] - The company maintains a strong domestic market presence, with significant growth in various product lines and regions, particularly in the high-end segment [2][4] - The company is focusing on improving marketing quality and channel management to sustain growth, especially in the face of macroeconomic pressures [4] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 19.07 billion yuan, with a year-on-year growth of 19.5%, and a net profit of 4.75 billion yuan, reflecting a 24.5% increase [2] - In Q3 2024, revenue reached 5.26 billion yuan, growing 13.4% year-on-year, while net profit was 1.17 billion yuan, up 13.6% year-on-year [2] Product and Regional Performance - The company expects revenue growth of approximately 25% for its high-end products, with specific products like Gu 20 experiencing a slowdown due to inventory management [2] - The domestic market remains robust, with strong performance in products such as Gu 5, Gu 18, and Gu 16, while the expansion in the external market is cautious [2] Cost and Profitability - The company has improved efficiency in its cost structure, although net profit margins were slightly affected by tax fluctuations and increased competition [3] - In Q3 2024, the net profit margin increased by 0.05 percentage points year-on-year, driven by cost efficiency improvements, despite a decline in gross margin [3] Earnings Forecast and Valuation - The company adjusted its net profit forecasts for 2024-2026 to 5.7 billion, 6.7 billion, and 7.9 billion yuan respectively, with corresponding P/E ratios of 17, 15, and 12 times [4] - The expected growth rates for net profit are 24%, 17%, and 19% for the respective years [4]