BIEM(SZ:002832) Soochow Securities·2024-11-02 03:39Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 3.0 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 7.30%. The net profit attributable to the parent company was 762 million yuan, up 0.55% year-on-year [2] - In Q3 2024, the company experienced a revenue decline of 4.4% year-on-year, with net profit down 17.32% year-on-year, primarily due to increased expenses related to new brand initiatives. Despite this, the company's performance remains relatively resilient compared to peers [2][3] Financial Performance Summary - Q3 gross margin decreased by 1.95 percentage points to 73.79%, attributed to a higher proportion of online sales and changes in product mix. The expense ratio increased by 5.72 percentage points to 41.78%, mainly due to rising management expenses linked to new brand team building [3] - As of the end of Q3 2024, inventory increased by 28.2% year-on-year to 888 million yuan, with inventory turnover days extending by 8 days to 304 days. Operating cash flow for Q3 2024 was 119 million yuan, down 67% year-on-year, primarily due to increased payments for goods and expenses [4] - The company has adjusted its net profit forecasts for 2024-2026 from 1.06 billion, 1.24 billion, and 1.45 billion yuan to 920 million, 1.05 billion, and 1.21 billion yuan, respectively, corresponding to P/E ratios of 12, 10, and 9 times [4]