Huafu(SZ:002042) EBSCN·2024-11-02 02:39Investment Rating - The investment rating for the company is maintained at "Neutral" [1]. Core Views - The company reported a revenue decline of 15.6% year-on-year for the first three quarters of 2024, with a net profit attributable to shareholders down 44% [1]. - The gross margin slightly decreased to 5.1%, while the expense ratio increased, indicating pressure on profitability [1]. - The company is focusing on developing new business segments, such as socks and fabric, to drive future growth [1]. Financial Performance Summary - Revenue for the first three quarters of 2024 was 9.33 billion yuan, a decrease of 15.6% year-on-year [1]. - The net profit attributable to shareholders was 47.78 million yuan, down 43.7% year-on-year, with a loss in non-recurring net profit of 60.76 million yuan [1]. - Earnings per share (EPS) for the period was 0.04 yuan [1]. - The gross margin for the first three quarters was 5.1%, a slight decrease of 0.1 percentage points year-on-year [1]. - The company plans to distribute a dividend of 0.031 yuan per share, with a payout ratio of 104% for the first three quarters [1]. Quarterly Performance Summary - In Q3 2024, the company achieved a revenue of 2.8 billion yuan, with a net profit of -134 million yuan, reflecting a significant decline compared to previous quarters [1]. - The quarterly net profit figures for the first three quarters were -74.0%, +6.4%, and -15.9% year-on-year [1]. - The company experienced a slowdown in inventory and accounts receivable turnover, with inventory turnover days increasing to 134 days [1]. Future Outlook - The company is expected to face short-term performance pressure due to demand uncertainties, but it is investing in new projects to cultivate growth [1]. - The profit forecast for the company has been revised downwards, with expected EPS for 2024, 2025, and 2026 at 0.04, 0.08, and 0.13 yuan respectively [1]. - The projected price-to-earnings (P/E) ratios for 2024 and 2025 are 89 and 52 respectively, maintaining a "Neutral" rating [1].