WLY(SZ:000858) Huafu Securities·2024-11-03 04:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [7]. Core Views - The company achieved a revenue of 67.916 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 8.60%, and a net profit of 24.93 billion yuan, up 9.19% year-on-year. However, the revenue and profit growth rates in Q3 showed a significant slowdown compared to Q1 and Q2 [1]. - The gross margin improved to 76.18% in Q3 2024, an increase of 2.77 percentage points year-on-year, while the net profit margin slightly decreased to 34.02% due to rising expense ratios [1]. - The company announced a shareholder return plan for 2024-2026, committing to a cash dividend payout ratio of no less than 70% of the annual net profit, with a total cash dividend of at least 20 billion yuan each year [1]. - The company is focusing on maintaining price stability and enhancing sales through strategic marketing initiatives, particularly in the high-end product segment [1]. Financial Summary - For 2024E, the company is projected to achieve a revenue of 89.728 billion yuan, with a growth rate of 8%. The net profit is expected to be 32.293 billion yuan, reflecting a growth rate of 7% [2]. - The earnings per share (EPS) for 2024E is estimated at 8.32 yuan, with a price-to-earnings (P/E) ratio of 17.9 [2]. - The company’s total assets are projected to reach 207.629 billion yuan by 2024E, with a debt-to-asset ratio of 20% [5].