FLYCO(SH:603868)2024-11-03 03:11Investment Rating - The investment rating for the company is maintained at "Outperform" [3] Core Views - The company's Q3 2024 performance met expectations, with total revenue of 3.32 billion yuan, a year-on-year decline of 17%, and a net profit attributable to shareholders of 465 million yuan, down 44% year-on-year [1] - The brand structure is further optimized, with the introduction of new products and a focus on high-end design driving brand upgrades [2] - The company continues to invest heavily in sales expenses, resulting in improved profitability on a quarter-on-quarter basis [3] - The profit forecast for 2024-2026 has been revised downwards, with expected net profits of 644 million yuan, 753 million yuan, and 891 million yuan respectively [3] Summary by Sections Financial Performance - For Q3 2024, the company achieved a gross margin of 56.92%, a year-on-year decrease of 0.41 percentage points, with a net profit margin of 14.88%, down 1.69 percentage points year-on-year but up 3.05 percentage points from Q2 [3] - The company reported a total revenue of 3.32 billion yuan for the first three quarters of 2024, with a net profit of 465 million yuan [1] Brand Development - The company launched nine new product series in the first half of 2024, including shavers and high-speed hair dryers, to enhance its market position [2] - The BoRui brand saw a revenue increase of 35.92% in the first half of 2024, with a market share increase [2] Sales and Marketing - The sales expense ratio for Q3 2024 was 36.23%, an increase of 5.40 percentage points year-on-year, reflecting increased advertising and promotional expenditures due to intensified industry competition [3] Profit Forecast - The revised profit forecasts for 2024, 2025, and 2026 indicate a significant decline in 2024, followed by growth in subsequent years, with expected year-on-year changes of -36.8%, +16.9%, and +18.4% respectively [3]