DSL(603233) Huachuang Securities·2024-11-01 15:39Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 18.7 yuan [1]. Core Views - The company's performance in the first three quarters of 2024 met expectations, with revenue of 19.73 billion yuan, a year-on-year increase of 11.3%, while net profit attributable to shareholders decreased by 26.9% to 860 million yuan [1]. - The retail segment showed steady growth, with revenue of 16.35 billion yuan, up 9.7% year-on-year, and a gross margin of 37.3% [1]. - The company is dynamically adjusting its store expansion pace, focusing on quality development, with a total of 16,453 stores as of Q3 2024, a year-on-year increase of 26.6% [1]. - Short-term gross margins are under pressure, with a gross margin of 34.2% in Q3 2024, down 2.0 percentage points year-on-year [1]. Financial Summary - For 2024, the company expects net profit attributable to shareholders to be 1.03 billion yuan, a decrease of 12% year-on-year, followed by a recovery with growth rates of 15% in 2025 and 2026 [1][5]. - The total revenue forecast for 2024 is 27.6 billion yuan, with a year-on-year growth rate of 12.5% [2]. - The company’s total assets are projected to reach 26.7 billion yuan in 2024, with a debt-to-asset ratio of 36.07% [3][5].