lolo(SZ:000848) Haitong Securities·2024-11-03 07:21Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a revenue of 2.159 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 6.10%. However, the net profit attributable to shareholders decreased by 5.49% to 419 million yuan [4][5] - In Q3 2024, the company achieved a revenue of 525 million yuan, down 2.99% year-over-year, but the gross profit margin increased by 3.22 percentage points, leading to a gross profit increase of 5.36% [6] - The company plans to repurchase and cancel shares to enhance shareholder returns, with a buyback of 30 to 60 million shares at a maximum price of 11.75 yuan per share, totaling up to 705 million yuan [6] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 2.159 billion yuan (YOY +6.10%), with a net profit of 419 million yuan (YOY -5.49%) and a non-recurring net profit of 418 million yuan (YOY -5.13%) [4] - In Q3 2024, the company reported a revenue of 525 million yuan (YOY -2.99%) and a net profit of 126 million yuan (YOY -2.30%) [5][6] Profitability Metrics - The gross margin for Q1-Q3 2024 decreased by 1.62 percentage points due to rising raw material costs, while the gross profit increased by 2.11% [5] - In Q3 2024, the gross margin improved by 3.22 percentage points, resulting in a net profit margin of 23.92% [6] Future Projections - Revenue projections for 2024-2026 are 3.273 billion yuan, 3.544 billion yuan, and 3.857 billion yuan, respectively, with net profits of 638 million yuan, 773 million yuan, and 883 million yuan [7][10] - The estimated EPS for 2024-2026 is 0.61 yuan, 0.73 yuan, and 0.84 yuan per share [7][10] Valuation - The company is assigned a PE valuation range of 15-18 times for 2024E, with a reasonable value range of 9.15 to 10.98 yuan per share [7][9]